Nongshim Q2 Operating Profit 17.3 Billion KRW...58.3% Decrease YoY

Operating Profit of 45.6 Billion Won in First Half... 57% Decrease

[Asia Economy Reporter Seungjin Lee] Nongshim's performance declined as its domestic noodle and snack businesses struggled despite strong results from its overseas subsidiaries in the first half of this year.

Nongshim announced on the 17th that its consolidated operating profit for the second quarter was 17.3 billion KRW, down 58.3% compared to the same period last year. Sales amounted to 647.9 billion KRW, down 5.98%, and net profit plunged 49.8% to 18.2 billion KRW.

With a significant drop in second-quarter results, the first-half performance also retreated. First-half sales totaled 1.2823 trillion KRW, and operating profit was 45.6 billion KRW, representing decreases of 5.4% and 56.5%, respectively, compared to the previous year.

Sales from overseas subsidiaries in the first half increased by 3.2%, driven by strong performance in regions such as the United States, Canada, Australia, and Japan, while domestic sales declined 8.4% due to sluggish noodle and snack businesses.

Looking at sales by overseas subsidiaries, the China subsidiary recorded 170.1 billion KRW, down 13.8% year-on-year due to decreased sales in large stores.

The United States and Canada subsidiaries posted sales of 194 billion KRW and 29.1 billion KRW, up 11.5% and 13.6% year-on-year, respectively, reflecting continued growth centered on local large retail channels.

Japan subsidiary sales rose 11.6% year-on-year to 42.9 billion KRW. This growth was driven by prolonged preference for home dining due to COVID-19, boosting sales centered on the Shin Ramyun brand, and expanded shelf presence of Chapagetti and Neoguri brands.

Australia subsidiary sales increased 11.6% to 17.1 billion KRW. Meanwhile, the Vietnam subsidiary recorded sales of 3.6 billion KRW, down 17%.

By business segment, noodle and snack sales in the first half fell 11.6% and 6.9%, respectively, compared to the previous year. During the same period, beverage and other segments grew by 1.7% and 8.8%, respectively.

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