Nongshim Sales Grow on Overseas Subsidiary Growth and Strong Exports; Operating Profit Falls 8.6% on Cost Pressures

[Financial News] NONGSHIM CO., LTD. (Nongshim) recorded higher sales in the third quarter of this year, boosted by growth at its overseas subsidiaries and strong exports. However, profitability worsened as costs rose, including prices for raw and other materials and logistics expenses.
Nongshim said in a filing on the 13th that consolidated revenue for the third quarter of this year totaled 929.6 billion won, up 6.7% from the same period a year earlier. Operating profit fell 8.6% to 49.7 billion won.
Growth at major overseas subsidiaries, including those in the United States and China, and strong exports drove the increase in sales. In the first nine months, overseas sales accounted for 39.4% of consolidated revenue, up 2.6 percentage points from the same period a year earlier.
However, operating profit from domestic business declined as profitability came under greater pressure from higher prices for raw and other materials, including palm oil, and increased export-related costs, such as ocean freight and energy.
Net income fell 41.3% year on year to 29.7 billion won, affected by an increase in non-operating losses, including foreign-exchange losses amid greater exchange-rate volatility.
In the first nine months, consolidated revenue and operating profit totaled 2.8197 trillion won and 176.4 billion won, respectively. They were up 7.1% and 17.1%, respectively, from the same period a year earlier.
A Nongshim official said, “Growth at major overseas subsidiaries, including those in the United States and China, and strong exports drove the improvement in overall results.”


[email protected] Kim Seo-yeon Reporter