Ottogi's Q1 Operating Profit Down 21.5%... "Profitability Worsened by Cost Burden and Rising Exchange Rates"

Ottogi succeeded in expanding its business scale in the first quarter of this year, but its profitability declined due to increased costs such as labor and transportation expenses, as well as the impact of rising exchange rates.

On May 15, Ottogi announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally estimated at 57.5 billion KRW, a decrease of 21.5% compared to the same period last year. During the same period, sales increased by 4.2% to 920.8 billion KRW, but net profit fell by 31.5% to 33.2 billion KRW.

An Ottogi representative explained, "Sales increased because refrigerated and frozen products such as dumplings and pizza sold well in the domestic market, and exports also rose." The representative added, "However, the burden of selling and administrative expenses such as labor costs, freight, and storage fees grew, and the rising exchange rate increased cost pressures, resulting in lower operating profit."

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