Published 16 May.2022 12:37(KST)
[Asia Economy Reporter Hyungsoo Park] Mirae Life Resources is showing strong performance. The sudden announcement of India's wheat export ban appears to be influencing the stock price amid a surge in international wheat prices.
As of 12:36 PM on the 16th, Mirae Life Resources is trading at 9,200 KRW, up 17.93% from the previous day.
At the Chicago Board of Trade (CBOT), wheat futures prices temporarily jumped 5.9% to $12.475 per bushel, marking the highest level in two months. Although India is not a major exporter in the international grain market, the export ban announcement amid growing concerns over wheat supply shortages due to Russia's invasion of Ukraine appears to have shocked the market.
Mirae Life Resources recorded consolidated sales of 21.27 billion KRW in the first quarter of this year, a 90% increase compared to the same period last year. Sales by business segment were 18.23 billion KRW in the feed sector and 3.04 billion KRW in the food sector. Operating profit and net income increased by 134% and 58% respectively compared to the same period last year, with operating profit at 770 million KRW and net income at 480 million KRW.
A representative from Mirae Life Resources explained, "Domestically, sales increased due to price normalization and increased ODM and OEM orders for premix products from large feed companies," adding, "Overseas, sales from the Singapore local subsidiary increased." They further noted, "Continuous sales and marketing activities in the pet business sector and the discovery of new large distribution partners in the food sector also contributed to improved performance."
Additionally, they emphasized, "In the feed sector, we are actively pursuing differentiated product development and pet business initiatives, while in the food sector, we are actively diversifying business areas such as Home Meal Replacement (HMR). We are focusing on marketing strategies to promote sales of our own brand products."
Mirae Life Resources expects increased profits through entry into the health functional food sector, a new growth engine. According to the quarterly report, the average selling price calculated by dividing feed sector sales by sales volume reflected increases in global raw material prices and logistics costs. Compared to the end of 2021, the price of special processed raw materials (EP) increased by 37.51%, functional raw materials by 15.14%, and additives by 70.54%. For pet products, the average selling price rose by 55.84% due to diversification of sales channels and production of high value-added products.
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