Performance Improvement in the First Year under Hahn & Company
Profitability Continues to Improve Following Third Quarter Turnaround
Namyang Dairy Products improved profitability, successfully turning its net income positive for the first time in six years.
Namyang Dairy Products announced on the 10th that it recorded consolidated sales of 952.8 billion KRW and an operating loss of 9.9 billion KRW last year. Sales decreased by 4.4% compared to the previous year, while operating loss improved by 86.2%. The annual deficit shrank by 71.5 billion KRW. Net income turned positive at 73.24 million KRW, marking the first profit since the third quarter of 2019, six years ago.
The company explained that these results were driven by management efficiency and customer-centric strategies that led to improved performance. After the largest shareholder changed to Hahn & Company at the end of January last year, Namyang Dairy Products completed the formation of a new board of directors through the regular shareholders' meeting in March and embarked on full-scale management innovation. Accordingly, it reorganized its existing business operations and established a management system focused on strengthening competitiveness. In particular, it streamlined inefficient foodservice businesses, restructured its product portfolio, and promoted company-wide structural improvements and operational efficiency.
As a result, starting from the third quarter of last year, the company achieved a quarterly operating profit and net income turnaround for the first time in 20 quarters. It maintained this positive trend in the fourth quarter, expanding both operating profit and net income. This is evaluated as an indicator that efficient management strategies and the establishment of a sustainable profit structure are yielding results.
Along with performance improvement, Namyang Dairy Products is actively pursuing various activities to enhance shareholder value. From June last year to January this year, it repurchased treasury shares worth a total of 40 billion KRW, and the repurchased shares have been continuously canceled in multiple rounds. In September of the same year, the company split its par value per share from 5,000 KRW to 500 KRW to improve investment accessibility for small shareholders and increase stock liquidity.
A Namyang Dairy Products official stated, "As a result of intensive reform efforts combined with ESG (Environmental, Social, and Governance) management to normalize operations and strengthen consumer trust, we are seeing performance improvements." He added, "We will continue to prioritize customer satisfaction and grow into a healthy Namyang Dairy Products that fulfills its social responsibilities."
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