"K-Ramen Booming Overseas"... Nongshim's Operating Profit Up 31.7% in H1

First-Half Sales Reach KRW 1.89 Trillion, Up 7.3%

Nongshim achieved a rebound in earnings by focusing on the performance of its overseas business during the second quarter (April to June) and the first half of this year.

Nongshim reported on a consolidated basis that its revenue for the second quarter of this year reached 956.1 billion won and operating profit totaled 59.3 billion won, representing increases of 10.2% and 47.6%, respectively, compared to the same period last year. On a separate basis, revenue was 738.4 billion won and operating profit was 32.1 billion won, up 6.4% and 4.2% each. Compared to the previous quarter, separate revenue grew by 3.3%, while operating profit declined by 32.0%.

A Nongshim official explained, "Revenue grew by 3.3% compared to the first quarter thanks to strong exports, but operating profit fell by 32.0% quarter-on-quarter due to increased cost burden from soaring material prices, such as packaging, amid high exchange rates and high oil prices."

However, Nongshim's consolidated revenue and operating profit for the first half of this year stood at 1.8901 trillion won and 126.7 billion won, respectively, up 7.3% and 31.7% year-on-year.

Nongshim explained that the overall improvement in performance was driven by growth in overseas business revenue and improved profitability through exports and overseas subsidiaries. While revenue at domestic subsidiaries fell by 0.5% in the first half due to declining sales stemming from a shrinking domestic market, overseas subsidiaries posted 26.8% growth.

In the first half, overseas sales accounted for 40.2% of Nongshim's total revenue. Major overseas subsidiaries in countries such as China, the United States, and Japan continued their growth trajectories, and the European subsidiary, focused on Western Europe including the United Kingdom, continued to expand its revenue.

The U.S. subsidiary, which is the company's largest revenue source, generated 287.3 billion won in the first half of this year, up 10.6% from a year earlier. The Chinese subsidiary also notched a 21.9% year-on-year sales increase. The European subsidiary showed remarkable growth, reporting 80.3 billion won in sales for the first half, a 771.9% jump compared to the previous year.

A Nongshim official noted, "Sales from overseas subsidiaries increased 26.8% year-on-year," and added, "In China, entry into new offline retail channels such as snack stores was expanded; in the U.S. and Canada, sales through modern distribution channels were strengthened, expanding the brand lineup and benefiting from price adjustments."

Nongshim's gross profit margin for the first half of this year was 30.4%, up 2.2 percentage points year-on-year, and its operating margin improved from 5.5% in the first half of last year to 6.7% this year.

This content was produced with the assistance of AI translation services.