Samyang Foods Achieves Record Quarterly Operating Profit of 26.6 Billion KRW, Up 73% YoY

[Asia Economy Reporter Choi Saeng-hye] Samyang Foods has achieved its highest quarterly sales and operating profit ever.

Samyang Foods announced on the 14th that it recorded consolidated sales of 156.3 billion KRW and operating profit of 26.6 billion KRW in the first quarter (January to March). Compared to the same period last year, sales increased by 29% and operating profit by 73%.

The increase in ramen demand due to the COVID-19 pandemic drove the first quarter performance. Overseas, sales reached 77.3 billion KRW, a 49% growth compared to the same period last year, as actual demand increased due to various countries' restrictions on going out, and overseas clients increased their orders fearing supply difficulties caused by logistics disruptions. Samyang Foods' share of Korean ramen exports expanded from 43% last year to 49% in the first quarter of this year.

Domestically, sales reached 79.0 billion KRW, a 15% increase compared to the same period last year. Starting from the end of February, when the spread of COVID-19 intensified, order volumes more than doubled compared to before, and the extended time spent at home due to social distancing measures such as working from home led to increased ramen demand, resulting in higher domestic sales.

In particular, operating profit improved significantly compared to the same period last year as the export ratio, which requires less selling and administrative expenses than domestic sales, expanded, and marketing costs decreased due to the impact of COVID-19.

A Samyang Foods official said, “Going forward, we plan to continue our growth by focusing on establishing a stable sales network and brand marketing activities overseas, while domestically launching differentiated new products, strengthening social network service (SNS) marketing, and promoting various collaborations using the Buldak brand.”

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