Namyang Dairy Products Ends Five-Year Loss Streak, Posts Sales and Operating Profit Growth in Q1

Exports Surge 81%, Overseas Expansion Focused on Infant Formula and Protein Products
Take Fit and Baekmidang Drive Growth, Business Restructuring Effects Accelerate

On May 15, Namyang Dairy Products announced that it recorded consolidated sales of 225.2 billion won and operating profit of 500 million won in the first quarter of this year. Sales increased by 4.4% compared to the same period last year, while operating profit surged by 572%. Net profit for the period was 6.3 billion won, marking a 419% increase.

The company explained that net profit rose because 8.27 billion won deposited as compensation for damages related to embezzlement and breach of trust by the family of former Chairman Hong Won-sik was reflected as other non-operating income.

Scene from the Korea-Vietnam Business Forum (from left, Viet Hung Pham, Business Development Director at Phu Thai Holdings, Seung-eon Kim, President of Namyang Dairy Products, Dinh Doan Pham, Chairman of Phu Thai Holdings, Dongchun Lee, Vice President of HAN & Company) Provided by Namyang Dairy Products.

Since its management system shift, Namyang Dairy Products has focused on restructuring its business and product portfolio and enhancing operational efficiency to improve profitability after five years of consecutive losses. Following a turnaround to an annual surplus last year, both sales and operating profit grew together in the first quarter of this year.

This improvement in performance was driven by the expansion of exports and B2B business. First-quarter export sales reached 16.4 billion won, an increase of about 81% compared to the same period last year. Exports of powdered milk, mainly to Cambodia and Vietnam, rose by 54%, while exports in other categories, including coffee and protein products, increased by 136%.

Domestically, sales grew evenly across major distribution channels such as convenience stores (CVS), supermarkets (SSM), and e-commerce. Food service (FS) channel sales, targeting franchise cafes and catering companies, also increased by 13% compared to the same period last year.

By brand, sales of the protein brand 'Take Fit' rose by 72%. The company attributed this growth to the expansion of its product lineup and entry into overseas distribution channels. Sales of 'French Cafe Coffee Mix' increased by 14%, and sales of processed milk products such as 'Choco Emong' and 'Matcha Emong' grew by 7%.

The premium ice cream and coffee brand Baekmidang also continued its growth trend. Baekmidang's first-quarter sales were 7.6 billion won, up 44% from the same period last year, and operating profit turned positive at 120 million won.

Namyang Dairy Products is also accelerating its global business expansion. Earlier this year, the company signed a memorandum of understanding (MOU) with Vietnamese distributor Phu Thai Holdings for the supply of infant formula, and last month, during the Korea-Vietnam Economic Delegation's schedule, it signed an additional agreement worth 70 billion won over three years.

A representative of Namyang Dairy Products stated, "We are continuing to improve profitability by restructuring our product portfolio, streamlining channels, and expanding growth categories," adding, "We plan to strengthen our competitiveness in the global market by expanding overseas operations focused on growth products such as infant formula, coffee, and protein."

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