Despite Overseas Growth, Rising Raw Material Costs Weigh on Nongshim; Q3 Operating Profit Down 8.6%

Third-quarter operating profit: 49.7 billion won
Revenue: 929.6 billion won... up 6.7%
Growth at overseas subsidiaries and strong exports
Higher raw material and export-related costs weigh on profitability

Nongshim's sales increased in the third quarter (July-September) of this year, driven by growth at overseas subsidiaries and strong exports, but profitability deteriorated as cost pressures mounted, including higher prices for raw and subsidiary materials. 

Nongshim said on November 13 that its third-quarter operating profit on a consolidated basis fell 8.6% year over year to 49.7 billion won. Revenue for the same period rose 6.7% to 929.6 billion won.

Growth at major overseas subsidiaries, including those in the United States and China, and strong exports drove the increase in revenue. However, operating profit in the domestic business declined as profitability came under greater pressure from higher prices for raw materials, including palm oil, and increased export-related expenses, such as ocean freight and energy costs.

Net income fell 41.3% year over year to 29.7 billion won. The increase in non-operating losses, including foreign exchange losses resulting from greater exchange rate volatility, contributed to the decline.

Cumulative revenue and operating profit through the third quarter of this year were 2.8197 trillion won and 176.4 billion won, respectively, up 7.1% and 17.1% year over year. Overseas sales accounted for 39.4% of consolidated revenue in the first three quarters, up 2.6 percentage points from the same period a year earlier.

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