Samyang Foods Q2 operating profit jumps 46.7% on record overseas sales

Samyang Foods reported second-quarter operating profit of 176.2 billion won (about $124.7 million), up 46.7% from a year earlier, as strong overseas demand pushed revenue to a record 770.3 billion won for the April-June period, up 39.3%. Overseas sales rose 46.7% to 645.8 billion won, surpassing 600 billion won in a single quarter for the first time and accounting for 83.9% of total revenue. The operating margin reached about 23%, extending a run of six straight quarters above 20%. First-half cumulative revenue rose 37.2% to 1.48 trillion won from 1.08 trillion won a year earlier, while operating profit increased 39.1% to 353.3 billion won. Samyang said wider overseas distribution, improved production efficiency at domestic facilities including the Miryang plant and favorable currency effects supported earnings growth. Its Buldak brand surpassed cumulative global sales of 10 billion units as of late May. Growth was broad across major markets. Sales in the Americas climbed 54% to 203.6 billion won as Samyang expanded in mainstream and ethnic channels in the United States and increased sales in Central America, including Mexico. China revenue increased 44% to 181 billion won as the company broadened penetration into snack channels and other retail outlets, while Europe rose 61% to 80.6 billion won, the fastest rate among key regions, helped by strong sales in Germany and France and expansion into additional countries. Domestic revenue also increased 10.2% to 124.5 billion won. Samyang said it plans to strengthen regional overseas subsidiaries and expand production capacity at home and abroad to meet rising international demand despite global economic uncertainty.

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