"HiteJinro Faces Ongoing Marketing Cost Burden, 3Q Operating Profit 43.4 Billion KRW... 24% Decrease YoY"

HiteJinro posted lackluster results in the third quarter due to rising raw material costs and increased selling, general and administrative expenses and marketing costs following the launch of the new beer product, Kelly.

HiteJinro announced on the 13th through a disclosure that its consolidated operating profit for the third quarter this year was 43.4 billion KRW, down 23.7% compared to the same period last year. Sales during the same period decreased by 0.4% to 654.3 billion KRW.

The company explained that the decline in operating profit was due to the rise in raw material prices. In addition, increased SG&A and marketing expenses from the launch of the new beer product Kelly were also cited as reasons for the decrease in operating profit. HiteJinro's cumulative SG&A expenses for the third quarter rose from 556.1 billion KRW last year to 660.9 billion KRW this year.

However, sales in the beer segment increased compared to the previous quarter, driven by growth in the two brands Kelly and Terra. Beer segment sales rose 3.5% year-on-year to 636.5 billion KRW. On the other hand, soju segment sales fell 1.2% year-on-year to 1.1647 trillion KRW.

A HiteJinro official explained, "Beer sales increased in the third quarter due to the dual brand strategy of Kelly and Terra, leading to higher sales," adding, "Despite the overall market downturn, the actual sales trend for soju is positive."

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