Crown Confectionery and Haitai Confectionery, subsidiaries of Crown Haitai Holdings, both reported over a 30% decline in operating profit for the third quarter of this year. The increase in costs due to rising prices of key raw materials, including naphtha, has negatively impacted profitability.
According to the Financial Supervisory Service's electronic disclosure system on November 13, Crown Confectionery's standalone operating profit for the third quarter was 1.9 billion won, a 31.7% decrease compared to the same period last year. During the same period, sales fell to 106.2 billion won, down 2.1%, while net profit dropped to 1 billion won, a 46.6% decline.
Haitai Confectionery also reported disappointing results. Its consolidated operating profit for the third quarter was 5.5 billion won, a 33.7% decrease from the previous year. Sales decreased to 155.9 billion won, down 2.8%, and net profit fell to 2.8 billion won, a 35% decline.
For the first three quarters of this year, cumulative sales for both companies reached 473.7 billion won, a 1.9% decrease compared to the same period last year. Operating profit during this time was 25.5 billion won, down 20.5%.
Both companies have seen declining sales, which, combined with the accumulated burden of raw material costs, has led to deteriorating profitability. The rising prices of imported raw materials from overseas have significantly increased cost pressures, according to company officials.
* This article has been translated by AI.
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