Nongshim Achieves Record High Operating Profit Last Year... Overseas Business and New Products Drive Growth Together

Operating Profit of 212.1 Billion KRW Last Year... More Than Half Earned Overseas
New Products Like Meoktaekkang and Shin Ramyun The Red Also Show Success

Nongshim announced on the 14th that both its sales and operating profit last year reached record highs. Half of the operating profit was earned through overseas business centered on Shin Ramyun.

Nongshim's consolidated sales last year increased by 9.0% year-on-year to KRW 3.4106 trillion, and operating profit rose by 89.1% to KRW 212.1 billion. The operating profit margin was 6.2%.

Nongshim stated that the overseas subsidiaries' operating profit increased by 125%, driving overall profit improvement. The U.S. subsidiary saw sales and operating profit increase by 10.4% and 131.4%, respectively, due to expanded sales to local distributors following the operation of the second factory. In China, sales decreased by 4.1% due to a domestic economic downturn, but operating profit increased by 411%.

A Nongshim official said, "Amid ongoing global inflation, the appeal of ramen as an affordable and delicious meal has been highlighted, achieving great results both domestically and overseas." He added, "Especially since the second U.S. factory began full operation in May 2022, overseas subsidiary performance has grown significantly, and with increased domestic exports, more than about 37% of total sales and over 50% of operating profit were earned overseas."

The domestic business saw significant effects from new product launches. The products released in the second half of last year?Meoktaekkang, Shin Ramyun The Red, and Bread Boss?became popular among consumers, and about half of the domestic sales increase compared to the previous year came from new product sales.

Nongshim plans to further strengthen its growth mainly in overseas markets this year. Based on the expansion of the production line at the second U.S. factory in the second half of the year, it will challenge to expand market share in Texas and California in the U.S. and the local market in Mexico. Additionally, it plans to expand its lineup considering consumer preferences in various countries overseas and to solidify its foundation through sales network improvements.

According to the business report, Shin Dong-won, Chairman of Nongshim, received KRW 1.68971 billion in compensation, including salary and bonuses, last year. This is a 5.9% increase compared to the previous year's compensation of KRW 1.59573 billion.

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