'Jongga' Kimchi Drives Growth, Bio Leads... Daesang's Q1 Operating Profit Doubles

91.5% Increase Year-on-Year to 47.7 Billion KRW
Sales Growth in Fresh Foods and Recovery in Lysine Demand

Daesang achieved a surprising performance in the first quarter of this year, with operating profit nearly doubling compared to the same period last year, driven by the global sales growth of its food business, including the 'Jongga' kimchi brand, and the improvement in the bio sector's business conditions.

Daesang Jongga's pop-up store showcased in London, UK
[Photo by Daesang]

Daesang announced on the 16th that its consolidated operating profit for the first quarter of this year was preliminarily estimated at 47.7 billion KRW, a 91.5% increase from 24.9 billion KRW in the same period last year. During the same period, sales rose 5.5% to 1.045 trillion KRW, and net profit increased by 53.1% to 20.7 billion KRW.

In the food sector, sales of key items such as fresh foods, convenience foods, and seasonings grew, and the profitability of the Lunar New Year gift set business improved. Notably, global food sales increased by about 20%. Among fresh foods, Daesang's flagship brand, Jongga Kimchi, is analyzed to have performed well in overseas markets.

According to the Ministry of Agriculture, Food and Rural Affairs, Korea's kimchi export value from January to April this year was 57.3 million USD (approximately 77 billion KRW), up 6.8% compared to the same period last year. Since 2022, Daesang Jongga has accounted for more than 50% of Korea's kimchi export value.

In the materials sector, sales of starch syrup and high value-added bio specialty products increased, turning the segment profitable. The liquid lysine, an essential amino acid added to feed, which faced difficulties due to poor market conditions last year, saw some demand recovery, reducing the deficit.

Daesang presented plans to continue the upward trend through cost reduction and management efficiency improvements. It also intends to strengthen profitability in the food business and expand the B2B (business-to-business) market. In the materials business, it aims to enhance manufacturing competitiveness and expand sales of specialty products. Additionally, it plans to increase sales of global key items such as kimchi, sauces, convenience foods, and seaweed, and diversify local operations.

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