Hite Jinro has reported a slight increase in operating profit for the second quarter, driven by improved profitability in its soju segment despite a general decline in liquor consumption.
The company announced on August 13 that its consolidated operating profit for the second quarter reached 64.9 billion won, a 0.7% increase compared to the same period last year. However, sales fell to 618.6 billion won, down 4.3% year-on-year.
Hite Jinro attributed the resilience in operating profit to enhanced cost efficiency and a focus on profitability amid a challenging liquor market.
Performance varied across its business segments. The soju division saw sales rise to 382.7 billion won, a 0.1% increase from the previous year, while operating profit surged 18.4% from 49.1 billion won to 58.2 billion won.
In contrast, the beer segment was unable to escape the impacts of reduced consumer spending and declining sales. Second-quarter sales dropped 15.3% to 176.3 billion won, and operating profit fell 29.2% from 11.7 billion won to 8.3 billion won.
A Hite Jinro representative stated, "Despite the sluggish market, soju maintained a strong market lead, resulting in increased sales and operating profit. The beer segment faced simultaneous challenges from reduced consumption and sales, but we expect to improve third-quarter results through product diversification, including offerings like Terra Zero."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.