Kolmar BNH’s operating profit through the third quarter rises 32.6% as profitability improves

[Financial News] Kolmar BNH boosted profitability on the back of expanded overseas ODM sales and improved production efficiency.
Kolmar BNH, a health functional food ODM company, said on the 29th that it recorded revenue of 360.1 billion won and operating profit of 31.7 billion won on a cumulative standalone basis through the third quarter of this year. Revenue rose 4.1% and operating profit increased 32.6% from the same period a year earlier.
Overseas ODM sales grew as orders increased from existing global clients, including Haleon, as well as new clients. Operating profit also improved as the share of overseas sales, which are relatively more profitable, expanded, while the company enhanced the operating efficiency of its existing production facilities and optimized selling, general and administrative expenses.
The cumulative operating margin rose 1.9 percentage points, from 6.9% to 8.8%. Net income increased 305.3% from the same period a year earlier to 44.2 billion won. However, the increase in net income was largely due not only to improved operating performance but also to 27 billion won in HNG dividend income being recognized as non-operating income.
Kolmar BNH announced these results on a standalone basis. The aim was to show the growth and profitability of its health functional food ODM business while excluding changes in consolidated results stemming from its restructuring, including the transfer of its cosmetics business and the winding down of non-core and underperforming businesses.
The company plans to expand its overseas business by drawing on its materials, formulation and packaging technologies, as well as its experience supplying 26 countries, and by providing support from product development through local labeling and regulatory approvals.
[email protected] Jeong Sang-hee Reporter