Food Industry's '3 Trillion Club' Membership Grows... Twice as Many as Last Year

Nongshim, Lotte Confectionery, SPC Samlip, Ottogi, etc.
Surpass 3 Trillion Won in Sales Last Year... Enter the '3 Trillion Club'

The number of food companies entering the so-called "3 trillion won club," with annual sales exceeding 3 trillion won last year, doubled compared to the previous year. This is analyzed as a result of strong performance both domestically and internationally, along with the effects of price increases that continued last year.

According to the industry on the 18th, the number of food companies with annual sales exceeding 3 trillion won last year doubled compared to the previous year. Among the companies that announced their performance, Nongshim, Lotte Confectionery, SPC Samlip, and Ottogi surpassed 3 trillion won in annual sales for the first time. Previously, CJ CheilJedang, Dongwon F&B, Daesang, and Hyundai Green Food belonged to the "3 trillion club."

Ottogi surpassed 3 trillion won in sales for the first time in 53 years since its founding in 1969. Ottogi's consolidated sales last year were 3.1833 trillion won, a 16.2% increase from the previous year. Operating profit rose 11.5% to 185.7 billion won, and net profit increased 106.1% to 267.9 billion won. Ottogi attributes this to the reflection of fourth-quarter results due to the consolidation of Joheung and Ottogi.

Nongshim also surpassed 3 trillion won in sales for the first time in its history last year. Nongshim's consolidated sales last year were 3.1291 trillion won, up 17.5% from the previous year. Operating profit increased 5.7% year-on-year to 112.2 billion won, and net profit rose 16.5% to 116 billion won. Thanks to the operation of its second factory in the United States last year, sales in the North American region reached an all-time high, showing strong overseas business sales, and domestically, the effects of product price increases implemented last year appear to have been reflected in the fourth-quarter results this year.

Lotte Confectionery recorded sales exceeding 4 trillion won after merging with Lotte Food in July last year. Before the merger, the combined sales of Lotte Confectionery and Lotte Food last year increased 11.1% year-on-year to 4.0745 trillion won. In the confectionery business, despite rising raw material costs, profitability was defended by enhancing the competitiveness of key products, and the food business also saw sales growth due to sustained price increases and the effects of reopening. Overseas, sales growth was achieved mainly through key overseas subsidiaries in India, Kazakhstan, and Russia.

SPC Samlip's consolidated sales last year increased 12.5% to 3.3145 trillion won. Operating profit rose 35.3% year-on-year to 89.5 billion won, and net profit increased 31.6% to 53.2 billion won. It is analyzed that the improvement in profitability of the rest area business and the profitability of the distribution and logistics sectors led to the sales increase. In particular, the return of the Pok?mon Bread series, launched in February last year, is believed to have driven sales growth.

On the other hand, although all companies in the 3 trillion won club saw sales increase compared to the previous year, some experienced a decline in operating profit. Accordingly, voices calling for profitability improvement are also emerging.

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