[Photo: Namyang Dairy]
Namyang Dairy is achieving success with its premium formula strategy, focusing on ingredient competitiveness. The company reported a 10% increase in formula sales in the first quarter of this year, with exports soaring by 54%, indicating a rapid expansion of its global business.
On May 22, Namyang Dairy announced that its formula sales in Q1 rose by 10% compared to the same period last year. Domestic sales increased by 4%, while exports experienced a remarkable 54% surge.
The company explained that the growing consumer trend in the infant food market is shifting from brand recognition to prioritizing product competitiveness, such as ingredients and nutritional design, which has contributed to the success of its premium product strategy.
Namyang Dairy currently exports formula to major Asian countries, including China, Vietnam, Cambodia, Taiwan, and Mongolia.
In Cambodia, the company holds about 90% market share in the Korean formula segment, while in Vietnam, it is expanding local distribution partnerships.
Recently, at the Korea-Vietnam Business Forum, Namyang Dairy signed a memorandum of understanding (MOU) worth 70 billion won with Vietnam's largest distribution company, Phu Thai Holdings, for a three-year collaboration.
A Namyang Dairy representative stated, "The competitive landscape in the formula market is rapidly shifting from price-based to ingredient-based. We plan to continue expanding our market presence in Asia, including Southeast Asia, based on our quality competitiveness from domestic raw milk and premium nutritional design."
Meanwhile, Namyang Dairy has been recovering from poor performance during a legal dispute between former chairman Hong Won-sik, the second-generation founder, and private equity firm Hahn & Company. The company's profitability has improved since last year.
In Q1 of this year, operating profit reached 500 million won, a 572% increase compared to the same period last year. Revenue for the same period was 225.2 billion won, up 4.4%.
* This article has been translated by AI.
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