Improved Overseas Profitability... Pulmuone's Q1 Operating Profit Up 68%

First Quarter Revenue Reaches 850.4 Billion Won, Up 7.2%
Operating Profit Rises to 19 Billion Won, Up 68.9%

Pulmuone announced on May 15 that, driven by improved profitability in its overseas operations and enhanced efficiency in its domestic business, its operating profit for the first quarter of this year reached 19 billion won, a 68.9% increase compared to the same period last year. Revenue during the same period was tallied at 850.4 billion won, up 7.2% year-on-year.

The company explained that growth in new orders for its food service distribution business and improved profitability at overseas subsidiaries fueled this performance. Sales in the food service distribution segment rose 10.6% to 254 billion won, supported by new contracts for industrial and military meal services and the expansion of airport lounge and highway rest area businesses. Operating profit in this segment increased by 28.3% to 6.1 billion won.

Provided by Pulmuone.

In particular, the concession and rest area segment grew 17.7% year-on-year, bolstered by an increase in both domestic and international travelers and a rise in airport users. The development of regionally specialized menu items also contributed to improved results.

Sales in the overseas food manufacturing and distribution segment, which includes the United States, China, and Japan, rose 13.8% to 189.8 billion won. The overseas business operating balance improved from a deficit of 5.3 billion won in the first quarter of last year to break-even levels this year. For the U.S. subsidiary, increased sales of tofu and noodles drove performance. Thanks to channel expansion and higher sales volumes in strategic channels, the U.S. business achieved a profit for the third consecutive quarter since the second half of last year.

The Chinese subsidiary reported simultaneous growth in both sales and operating profit, driven by increased sales of noodles and frozen products and the expansion of its membership channel. The Japanese subsidiary reduced its deficit by more than 40% compared to the previous year through production base optimization and the expansion of its K-food product portfolio.

The domestic food manufacturing and distribution segment posted a 2.3% increase in sales year-on-year. Pulmuone Danone continued to improve its performance on the back of expanded sales of functional products such as protein and Greek yogurt, as well as growth in online channels. Sales in the health care manufacturing and distribution segment rose by 3.2%.

Kim Jongheon, policy chief at Pulmuone, commented, "For the domestic business, we plan to strengthen our stable profit base by expanding our shelf-stable beverage, noodle, and sauce product lines, as well as diversifying the soy category. For overseas operations, we will continue our growth and profitability by expanding supply through global retail and membership-based distribution channels and by strengthening our K-food portfolio."

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