Increased Raw Material Costs Burden Ottogi... Operating Profit Down 12.9% Last Year

Operating Profit of 222 Billion KRW, Sales Reached 3.5391 Trillion KRW
Chairman Ham Youngjun Received 1.36 Billion KRW in Salary Last Year

Ottogi received a disappointing report card last year due to rising raw material costs and marketing expenses.

Ottogi announced on the 18th that its operating profit last year was 222 billion KRW, a 12.9% decrease compared to the same period the previous year.

During the same period, net profit also decreased by 14.9% to 137.6 billion KRW, but sales increased by 2.4% to 3.5391 trillion KRW.

Ottogi

An Ottogi official explained, "Although there are differences by product category, sales slightly grew due to increases in frozen (dumplings, frozen convenience foods, etc.) and refrigerated products," adding, "Operating profit declined due to the overall rise in raw material and ingredient prices and increased selling and administrative expenses (due to intensified market competition, promotional costs for sales activities increased, as well as salary-related items)."

Meanwhile, according to the business report released on the same day, Ottogi Chairman Ham Young-jun received 1.36 billion KRW in compensation last year, including 960 million KRW in salary and 400 million KRW in bonuses. This represents an 8.2% increase compared to 1.249 billion KRW the previous year.

CEO Hwang Seong-man received an annual salary of 805 million KRW, including 540 million KRW in salary, 300 million KRW in bonuses, and 1 million KRW in other labor income. This is about a 0.8% increase compared to the previous year.

Vice President Kim Kyung-ho received 518 million KRW, including 312 million KRW in salary, 200 million KRW in bonuses, and 6 million KRW in other labor income (children's education expenses).