Pulmuone's China Unit Tops $70M on Frozen Kimbap, Noodle Push

Pulmuone Co.'s (017810) China subsidiary is posting growth despite the local economic slowdown. Analysts attribute the revenue expansion to the company's strategy of diversifying its product portfolio beyond tofu into frozen foods and noodles.

Industry sources said Tuesday that Pulmuone's China unit saw revenue rise more than 15% year-over-year to an estimated 100 billion won ($69 million) last year. The subsidiary had posted 105.2 billion won in 2022 before dropping to 81.5 billion won in 2023 amid weak domestic demand, staying in the 80 billion won range through 2024. Revenue rebounded sharply last year as interest in Korean food surged and sales of frozen products like kimbap and noodles such as udon climbed.

The frozen food segment, which includes kimbap and hot dogs, grew 72% last year. Frozen kimbap launched in September 2024 drove much of the gain. The "Korean-style Tuna Kimbap" sold at Sam's Club in China generated more than 10 billion won in sales over roughly one year.

Profitability is also expected to improve after the company shifted frozen kimbap production to a local contract manufacturer in the second half of last year. "Unlike before, when we produced in Korea and exported frozen products, we now manufacture directly at our Xiamen plant, cutting costs by about 40%," the company said.

Sales of shelf-stable noodles, including udon and cold noodles, jumped 81%. The company said easy preparation and restaurant-quality taste have resonated strongly with local consumers.

Headquarters is paying closer attention to the China business. CEO Lee Woo-bong visited the Beijing noodle plant in late January to taste-test the "Kimchi & Fish Cake Udon" ahead of its local launch and assess market conditions.

The revenue mix in China, previously concentrated in tofu and refrigerated pasta, is also shifting. Frozen foods and noodles accounted for 32.9% of total sales last year, up from 26.5% in 2023 and 25.9% in 2024. The company has reduced reliance on any single product category and built a more stable growth foundation.

"We plan to continue expanding frozen food and noodle sales this year while sequentially launching localized new products such as gnocchi," a Pulmuone official said. "We also plan to introduce a new flavor of frozen kimbap this month."