Buldak's Fierce Surge... Samyang Foods' First-Half Overseas Sales Near 1 Trillion KRW

Second Quarter Overseas Sales Expected to Reach 450 Billion KRW
Poised to Set an All-Time Record
Coachella and Miryang 2nd Plant Drive Growth

Samyang Foods is expected to achieve its highest-ever overseas sales in the first half of this year. Overseas sales in the first quarter surpassed 400 billion KRW for the first time, and second-quarter sales are estimated to be around 450 billion KRW. As a result, cumulative overseas sales for the first half are projected to approach 1 trillion KRW. This growth is driven by the expansion of overseas subsidiaries in the United States, China, and Europe, as well as increased production capacity following the completion of the Miryang 2nd Plant in June.

According to the food industry and securities firms on July 1, Samyang Foods' overseas sales in the second quarter are expected to reach around 450 billion KRW, up from 424 billion KRW in the previous quarter. This marks a record high for two consecutive quarters, following 424 billion KRW in the first quarter. Overseas sales for the first half of this year are estimated at approximately 900 billion KRW, representing an increase of more than 40% compared to 621 billion KRW in the first half of last year. Overseas sales accounted for 83% of total sales (5.423 trillion KRW, based on FnGuide data). Samyang Foods' overseas sales exceeded 300 billion KRW for the first time in the second quarter of last year, and have increased by more than 150 billion KRW in just one year.

Kim Jeongsu, Vice Chairman of Samyang Foods, visited the 'Coachella,' the largest music festival in the United States, last April and toured the Buldak Bokkeummyeon popup booth. Photo by Samyang Foods

Coachella Marketing Effect and Brand Awareness Growth

The increase in overseas sales is the result of expanding demand in major markets such as the United States, China, and Europe, as well as aggressive marketing strategies. In April, Samyang Foods became the first Korean food company to participate as an official partner at 'Coachella,' the largest music festival in the United States, where it operated a Buldak Bokkeummyeon popup booth. Although marketing expenses targeting local consumers increased, both brand awareness and purchase conversion rates rose, leading to higher sales.

Expanded production capacity also supported the improved performance. Samyang Foods began operating its Miryang 2nd Plant last month. The plant is equipped with six production lines, including three for bag noodles and three for cup noodles. As a result, Samyang Foods' annual ramen production capacity increased by about 34%, from 2.08 billion units at the existing Wonju, Iksan, and Miryang 1st plants to 2.8 billion units.

The strong export performance has also had a positive impact on profitability. According to FnGuide, Samyang Foods' operating profit in the second quarter is expected to reach 129.4 billion KRW, representing a 44.6% increase compared to the same period last year. Higher sales prices in the United States and Europe compared to Korea, as well as foreign exchange gains from the rise in the KRW-USD exchange rate, contributed to the improved results. While Buldak Bokkeummyeon sells for just over 1,000 KRW in Korea, it is sold for about 2,200 KRW (1.6 USD) at major retailers in the United States.

Market Cap Surpasses 10 Trillion KRW, a First for a Food Company, and High Expectations for China Plant

The proportion of overseas sales is expanding rapidly. Overseas sales accounted for 44% in 2017, 67% in 2022, 77% last year, and reached 80% in the first quarter of this year. Samyang Foods is now regarded as a food company primarily focused on exports.

The stock price is also on the rise. On June 27, Samyang Foods' market capitalization on the Korea Exchange reached 10.049 trillion KRW (closing price: 1,334,000 KRW). This ranks 54th on the KOSPI, comparable to Doosan (10.757 trillion KRW), Hyundai Glovis (10.2975 trillion KRW), Samsung Electro-Mechanics (10.121 trillion KRW), and HD Hyundai (10.0163 trillion KRW). This is also the first time a Korean food company has surpassed major food conglomerates such as CJ CheilJedang and Nongshim in market capitalization.

Samyang Foods will begin construction of its first overseas plant in Jiaxing, Zhejiang Province, China this month. The company plans to invest a total of 201.4 billion KRW, aiming for completion in 2027. Upon completion, the plant will have six production lines and is expected to produce products worth 600 to 700 billion KRW annually. All products manufactured at this plant will be supplied to the Chinese domestic market, representing an approximately 78% increase in production capacity compared to existing facilities. Concerns about supply shortages are also expected to be largely resolved.

Jang Jihae, a researcher at DS Investment & Securities, stated in a report, "Samyang Foods is entering its third phase of growth with the operation of the Miryang 2nd Plant this year and the planned operation of its first overseas plant in China in 2027." She added, "The company is expanding its presence in major overseas distribution channels, broadening its geographic reach from the United States to Europe and South America, and diversifying its product lineup, including Buldak Sauce exports."