Daesang's Q1 Operating Profit Rises 0.4% to 57 Billion Won

Growth in Food Business Offset by Sluggish Materials Segment
Daesang Reports 1.8% Decline in Q1 Sales

Daesang announced on May 15 that its consolidated sales for the first quarter of this year amounted to 1.1099 trillion won, marking a 1.8% decrease compared to the same period last year. During the same period, operating profit reached 57 billion won, reflecting a 0.4% increase.

The food business saw an increase in sales, driven by expanded sales of health and fresh food products as well as growth in global operations. Sales of global strategic items such as kimchi, seaweed, sauces, and home meal replacements (HMR) increased, and the expansion of overseas business also contributed to sales growth. Profitability in the food business improved thanks to efforts to reduce raw material costs and enhance processing efficiency.

In contrast, the materials business underperformed due to decreased demand resulting from the economic downturn. The bio-materials segment experienced a slowdown in performance as the one-off benefit from Europe’s anti-dumping tariffs on Chinese lysine in the first quarter of last year disappeared.

Daesang plans to strengthen its operations centered on cash-cow products and focus on growth and profit channels to improve profitability. Overseas, the company aims to enhance its competitiveness in the global food business by developing locally customized new products and establishing a more systematic brand structure.

Additionally, Daesang will expand its localization strategy for global core categories such as kimchi, seaweed, sauces, and home meal replacements. In the materials business, the company plans to pursue manufacturing rebalancing and reinforce its core technology capabilities. For the alternative sweetener allulose, Daesang aims to expand its market through the establishment of a global supply chain and the securing of overseas bases.

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