Namyang Dairy has reported increases in both revenue and operating profit for the first quarter of this year, driven by growth in exports and business-to-business (B2B) channels. This marks a continuation of the company's recovery following its return to profitability last year.
According to data released on May 17 by the Financial Supervisory Service, Namyang Dairy's consolidated revenue for the first quarter reached 225.2 billion won, a 4.4% increase compared to the same period last year. Operating profit surged to 500 million won, up 572%, while net profit rose to 6.3 billion won, a 419% increase.
The net profit includes 8.27 billion won in compensation payments related to embezzlement and breach of trust involving the family of former Chairman Hong Won-sik, which was recorded as other non-operating income.
Since transitioning to the Han & Company management structure, Namyang Dairy has focused on restructuring its business and improving operational efficiency. Although this has led to a reduction in scale due to the elimination of low-profit businesses and products, the company successfully returned to profitability last year and has shown simultaneous growth in revenue and operating profit this year.
Analysts attribute the performance improvement to the expansion of growth channels centered on exports and B2B. First-quarter export revenue reached 16.4 billion won, an increase of approximately 81% year-on-year. Exports of milk powder, primarily to Cambodia and Vietnam, rose by about 54%, while exports of other products, including coffee and protein items, surged by 136%.
Domestically, sales across major channels such as convenience stores, corporate supermarkets, and e-commerce grew steadily. Revenue from the food service (FS) B2B channel also increased by 13% compared to the previous year. The expansion of partnerships with franchise cafes and catering companies, along with diversification of supply items like milk, fermented milk, and cream, contributed to this growth.
Among its products, the protein brand 'Takefit' showed remarkable growth, with first-quarter sales increasing by 72% year-on-year. The company attributed this success to its strategy of expanding product lines and overseas sales channels.
In the coffee segment, sales of products like 'French Cafe Coffee Mix with Goat Milk Protein' increased by 14% in the first quarter, while processed milk brands 'Chocoemong' and 'Matchaemong' saw a 7% rise in sales.
The premium ice cream and coffee brand Baekmidang also continued its growth trend, with first-quarter sales reaching 7.6 billion won, a 44% increase from the same period last year. Operating profit turned around from a 300 million won loss in the first quarter of last year to a profit of 1.2 billion won this year.
Namyang Dairy is accelerating its global expansion efforts. Earlier this year, it signed a memorandum of understanding with Vietnamese distributor Phutai Holdings regarding the supply of formula milk, and in April, it secured an additional supply agreement worth 70 billion won over three years during a South Korea-Vietnam economic delegation visit.
A company representative stated, "We are continuing to improve profitability through the restructuring of our product portfolio and channel efficiency, and we plan to expand our overseas business focusing on growth products such as milk powder, coffee, and protein."
* This article has been translated by AI.
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