"K-Health Functional Foods Boom"... Kolmar BNH's Q1 Operating Profit Up 189% Year-on-Year

Sales Reach KRW 136.9 Billion, Operating Profit KRW 10.3 Billion
Overseas Sales Expansion and Acquisition of New Clients
Increased Order Volumes from Major Clients
Stable Operation of Sejong Plant 3 and Improved Production Efficiency

Kolmar BNH, an ODM company specializing in health functional foods, saw improved profitability in the first quarter of this year due to increased sales from both domestic and international clients, as well as a focus on efficient management.

Kolmar BNH CI. Provided by Kolmar BNH

On May 12, Kolmar BNH announced in a public disclosure that, on a consolidated basis, its operating profit for the first quarter of this year was tentatively estimated at KRW 10.3 billion, marking a 189% increase compared to the same period last year. During the same period, sales rose by 0.1% to KRW 136.9 billion, and net profit surged by 1,451.4% to KRW 22.4 billion.

Although total sales remained similar to the same period last year, the company explained that the sales composition shifted to higher growth and profitability. This was driven by an expansion of product lines and increased sales from global clients, acquisition of new customers, and higher order volumes from major domestic clients.

Operating profit saw a significant increase as the utilization rates of existing expanded production facilities, such as the Sejong Plant 3, improved, thereby reducing the burden of fixed costs and enhancing cost structures. Additionally, the company increased profitability through changes in product composition and improvements in operational efficiency.

Kolmar BNH plans to expand order volumes from existing clients and continuously secure new large-scale overseas clients, leveraging its competitiveness in raw materials and formulations. The company also expects to maintain solid performance in the second quarter through improved production efficiency and strengthened ODM competitiveness.

Lee Seunghwa, CEO of Kolmar BNH, stated, "Interest in K-health functional foods is growing in the global market, leading to increased orders from major clients and an expansion of new customer bases. We plan to strengthen our competitiveness in raw materials and formulations based on our health functional food ODM business, and to advance our research capabilities in natural material ingredients to further expand the foundation for mid- to long-term growth."

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