Namyang Dairy Products Reports Operating Profit of 509 Million KRW in Q3... Returns to Profitability After 20 Quarters

Namyang Dairy Products announced on the 14th that it successfully turned a profit in both operating profit and net income for the third quarter of this year.

Namyang Dairy Products posted an operating profit of 509 million KRW in the third quarter, turning profitable from an operating loss of 16 billion KRW on a consolidated basis in the second quarter.

This marks Namyang Dairy Products' first profit turnaround in 20 quarters since the second quarter of 2019. It is the result achieved six months after the largest shareholder changed to the private equity fund Hahn & Company at the end of January.

Net income for the same period also turned positive at 40 million KRW.

On an individual basis, Namyang Dairy Products recorded an operating profit of 2.314 billion KRW and net income of 1.04 billion KRW in the third quarter, successfully turning a profit in both categories.

However, sales decreased by 4.5% year-on-year to 242.7 billion KRW. Namyang Dairy Products attributed this to economic downturn and low birth rates.

Namyang Dairy Products explained, "The management strategy focused on strengthening profitability after the change of the largest shareholder was the main factor behind the profit turnaround," adding, "We boldly streamlined some underperforming businesses and products and worked on reducing costs and expenses."