SPC Samlip Catches Two Rabbits in 'Food·Bakery', Soars in Q1 Performance

Q1 Sales and Operating Profit Grow 11% and 53% Year-on-Year
Bakery and Food Segment Sales Increase 10% Each Year-on-Year
Focused Mega Brand Strategy with Samlip Hobang and Pig in the Garden Proves Effective

[Asia Economy Reporter Lim Hye-seon] SPC Samlip recorded strong performance in the first quarter of this year.

According to the Financial Supervisory Service's electronic disclosure system on the 10th, SPC Samlip's sales in the first quarter of this year increased by 10.5% year-on-year to 652.5 billion KRW. Operating profit also rose by 52.9% to 10.4 billion KRW.

Both the core business sectors of SPC Samlip, 'Bakery' and 'Food,' showed steady growth. Bakery and Food sales increased by 9.2% and 9.8% year-on-year, recording 160.9 billion KRW and 114.3 billion KRW respectively. Operating profits also increased by 25.2% and 72.3% respectively.

It is analyzed that the focus on mega brands such as Samlip Hoppang, Pig in the Garden, and Greek Schwein, along with strengthening the online business, led to the rise in performance.

First, ‘Samlip Hoppang,’ which celebrated its 50th anniversary last year, recorded the highest sales ever for the season. For this season, Samlip Hoppang applied a fermented rice starter developed by mixing SPC Group’s patented native lactic acid bacteria and ingredients extracted from Korean rice to all Hoppang products. They also introduced various new products such as Icheon Rice Hoppang, Gongju Chestnut Hoppang, and Sacheon Jjajang Hoppang. In addition to products, active marketing activities were carried out, including launching ‘Hojjimi,’ a mini steamer shaped like a Hoppang steamer, and the ‘Samlip Hoppang Brand Book,’ resulting in a 62% sales growth in the first quarter compared to the same period last year.

The core food business also grew significantly. Led by flagship brands ‘Pig in the Garden’ and ‘Greek Schwein,’ the expansion of product categories and diversification strategies resulted in fresh food and processed meat sales (based on ham and sausage categories) increasing by 22% and 13% year-on-year, respectively.

‘Pig in the Garden’ is a fine casual salad specialty store operated by SPC Group under the concept of ‘a healthy meal.’ It offers fresh salads and juices based on the know-how of the store, making them conveniently available at nearby discount stores and convenience stores. The first product was launched in November 2017. The category continues to expand with options ranging from ‘Bowl Salad’ and ‘Mini Salad’ that can be enjoyed as meal replacements to ‘Snack Salad’ for easy consumption and large-sized ‘Salad Kits.’

SPC Samlip’s premium ham and sausage brand Greek Schwein also showed positive results. SPC Samlip entered the processed meat business in earnest in 2014 and sells various category products such as ham, sausage, meatballs, and pilaf. Recently, the ‘Greek Schwein Juicy Buerst (Smoke & Basil)’ launched in November last year received a good market response, recording cumulative sales of 280,000 packs.

The business-to-business (B2B) segment of the food business also drove performance. Salads and processed meat products produced by SPC Samlip have been supplied to major domestic coffee brands and dining establishments since 2019, and B2B sales in the first quarter of this year increased by about 15% year-on-year.

Strengthening the online business was also effective. Online sales in the first quarter of this year grew by 38% year-on-year, with bakery product online channel sales growth reaching a particularly high 59%. Going forward, SPC Samlip plans to expand e-commerce and live commerce (D2C) channels to enhance its online business capabilities.

An SPC Samlip official said, “Strong performance was recorded as sales and profitability grew together in the bakery and food sectors, which are SPC Samlip’s core businesses. We plan to strengthen new product launches through mega brands such as Migak Bakery and Cafe Snow, and actively expand the food business by launching Just Egg and meal kit products.”

Meanwhile, after the first quarter earnings announcement, SPC Samlip showed a strong trend for two consecutive trading days and was trading at 80,500 KRW, the 52-week high, as of 1:35 PM on the 10th.

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