Samyang Foods Records Highest Ever Operating Profit Last Year... Overseas Sales Surpass 300 Billion Won for the First Time

[Asia Economy Reporter Seungjin Lee] Samyang Foods recorded its highest-ever sales and operating profit last year. The expansion of overseas distribution networks, the increase in key export products, and the rise in ramen demand due to COVID-19 contributed to significant growth in both domestic and international sales.

Samyang Foods announced on the 19th that it achieved consolidated sales of 648.5 billion KRW and operating profit of 95.3 billion KRW in 2020. Compared to the previous year, sales and operating profit increased by 19.3% and 21.9%, respectively.

Overseas sales rose by 35.8% year-on-year to 370.3 billion KRW, surpassing 300 billion KRW for the first time. The share of exports in total sales also increased to 57%. The increase in demand due to COVID-19, expansion of key products such as Buldak sauce, and active efforts to improve distribution network efficiency were effective. The largest export regions, China and Southeast Asia, saw sales increase by 20% and 18% respectively compared to the previous year, while U.S. sales grew by 120%, showing the highest growth rate.

As exports, which require less selling and administrative expenses compared to domestic sales, accounted for a larger share of total sales, operating profit also improved. Operating profit exceeded that of 2019 in the third quarter of 2020, and the annual operating profit margin for 2020 was 14.7%, surpassing the average in the food industry.

Domestically, sales reached 278.2 billion KRW, up 2.7% from the previous year, through new products developed via collaboration and strengthening of the Buldak brand lineup.

A Samyang Foods official stated, “This year, we plan to improve the sales structure that is concentrated on specific regions and brands, strengthen the overseas business division, and introduce various new products domestically in line with trends emphasizing health and the environment.”

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