Major Korean food companies posted strong first-quarter earnings across the board this year, as their overseas operations served as growth engines amid a sluggish domestic market and rising cost pressures. Analysts say K-food companies' global business structures are becoming more sophisticated, going beyond simple export expansion to combine local production capacity additions, distribution network reinforcement, and product localization strategies.
Samyang Foods (003230.KS) posted notable first-quarter results on a consolidated basis, with revenue of 714.4 billion won and operating profit of 177.1 billion won. The figures, up 35% and 32% from a year earlier respectively, marked record highs. The operating margin stood at 24.8%, remaining in the 20% range for the fifth consecutive quarter.
Overseas revenue of 585 billion won, up 38% year-on-year, drove the overall growth. European sales were particularly notable, surging 215%. The establishment of a UK subsidiary and expanded entry into mainstream distribution channels in Western European markets such as Germany and the Netherlands proved effective. Its U.S. and China subsidiaries also maintained steady momentum, growing 37% and 36% respectively. Higher utilization rates at the Miryang No. 2 plant expanded supply capacity, improving the company's ability to respond to global demand.
Orion (271560.KS) also continued its earnings uptrend, supported by high growth at its overseas subsidiaries. Orion's first-quarter operating profit rose 26% from a year earlier to 165.5 billion won, while revenue grew 16% to 930.4 billion won. The simultaneous growth across overseas subsidiaries in China, Vietnam, and Russia stood out.
The Russian subsidiary's revenue and operating profit jumped 34.7% and 66.2% respectively, driven by strong sales of Cham Bungeoppang and Fresh Pie. The China subsidiary also saw revenue rise 25% and operating profit climb 43%, boosted by the Lunar New Year season and expanded sales of snacks and jellies. In Vietnam, demand around the Tet holiday and rising sales of rice crackers led the growth.
Nongshim (004370.KS) reported strong results as overseas revenue from its U.S., China, and Japan subsidiaries rose 23.1%, even as domestic sales slipped slightly. First-quarter revenue and operating profit came in at 934 billion won and 67.4 billion won, up 4.6% and 20.3% respectively. The company has set a target to raise the overseas portion of its revenue, currently around 40%, to 60% by 2030.
Pulmuone (017810.KS) achieved record quarterly results with first-quarter revenue of 850.4 billion won and operating profit of 19 billion won, up 7.2% and 68.9% from a year earlier respectively. The U.S. subsidiary posted its third consecutive quarter of profit after turning a profit in the second half of last year, while the China subsidiary recorded double-digit growth, marking a full-fledged turnaround in overseas operations. Overall operating losses at overseas subsidiaries recovered to break-even (BEP) from a 5.3 billion won loss in the first quarter of last year. Analysts say it is significant that overseas operations, which had previously weighed heavily on costs, are now entering a profit-generating phase.
Ottogi (007310.KS) also posted first-quarter revenue of 955.2 billion won and operating profit of 59.4 billion won, up 3.7% and 3.3% respectively. Overseas sales rose 9.6%, lifting their share of total revenue to 11.5% from 10.9%. Ottogi has set overseas market expansion as its top priority, aiming for global revenue of 1.1 trillion won by 2030. To achieve this, the company is pushing forward with the construction of its first North American plant in California. "We will strengthen sales activities centered on global markets and continue our efforts to improve profitability," an Ottogi official said.
