"Material Business Slump" Daesang, 2Q Operating Profit 33.6 Billion KRW... 31%↓ YoY

Published 11 Aug.2023 17:10(KST)

Daesang's materials division underperformed, leading to a more than 30% decrease in operating profit in the second quarter.

"Material Business Slump" Daesang, 2Q Operating Profit 33.6 Billion KRW... 31%↓ YoY

Daesang announced on the 11th through a public disclosure that its consolidated operating profit for the second quarter of this year was tentatively estimated at 33.6 billion KRW, down 30.8% compared to the same period last year. During the same period, sales amounted to 1.0037 trillion KRW, a decrease of 2.1%, and net profit was recorded at 26.8 billion KRW, down 6.6%.

Operating profit for the first half of this year was 58.5 billion KRW, a 35.9% decrease compared to the same period last year. Sales during the same period decreased by 0.9% to 1.9932 trillion KRW. Half-year net profit fell by about 30% year-on-year to 57.6 billion KRW.

Daesang explained that the decline in operating profit was due to a drop in lysine market prices and reduced demand in the materials division. Additionally, the decrease was amplified by the base effect from the strong lysine market conditions in the first half of last year. Meanwhile, the slight growth in sales was mainly driven by increased sales of key products such as seasonings, sauces, and condiments.