Domestic Market Slump... Nongshim's Q1 Operating Profit 28.3 Billion KRW, Down 54% YoY

[Asia Economy Reporter Lee Seung-jin] Nongshim's operating profit decreased by about 54% compared to last year due to a decline in sales of noodles, snacks, and beverage businesses in the domestic market in the first quarter of this year.

Nongshim announced on the 17th that its sales in the first quarter reached 634.4 billion KRW, and operating profit was 28.3 billion KRW. Quarterly net profit was recorded at 29 billion KRW.

Sales decreased by 53.3 billion KRW compared to the previous year. The increase in fixed cost burden due to the decline in sales led to a larger decrease in operating profit. Operating profit fell by 35.3 billion KRW (54%) compared to the previous year.

Domestic corporation sales recorded 561.4 billion KRW, down 8% from the previous year. The noodle business, which accounts for more than half of total sales, experienced a significant decline. Noodle sales decreased by 15.4% compared to the previous year. Snack business sales dropped by 6.6% compared to last year, and beverage business sales decreased by 2.3% due to a decline in bottled water sales.

Overseas corporation sales decreased by 0.3% overall. In the Chinese market, sales at large stores declined, resulting in a 4.9% decrease in total sales. In Japan, demand for bagged noodles centered on Shin Ramyun increased, and sales grew significantly by 17.1% due to the expansion of the Neoguri brand lineup. The U.S. market saw a slight decrease of 0.8%, while sales in the Canadian market grew by 10.7%.

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