Pulmuone surpassed 3 trillion won in annual sales for the first time last year, achieving the largest performance in its history. The performance in the U.S. market, where tofu is the main product, was particularly notable. As a result, there is growing interest in the possibility of turning around the long-struggling overseas business from losses to profitability.
◇Record high annual sales of tofu in the U.S.
According to the Financial Supervisory Service's electronic disclosure system on the 25th, Pulmuone saw sales of 3.32137 trillion won and an operating profit of 92.1 billion won last year, based on preliminary estimates. This marks increases of 7.4% and 48.6%, respectively, compared to the previous year. The net profit also rose from 13.4 billion won in 2023 to 34 billion won last year.
A Pulmuone official noted, "Although the fourth quarter results from last year have not been officially released, the growth of the U.S. subsidiary is believed to have played a significant role in improving overall performance." According to Pulmuone, the sales of tofu and Asian noodles from the U.S. subsidiary increased by 12.1% and 21.1%, respectively, compared to the previous year. Snack sales also surged by 182.2%. Notably, the tofu sector, which accounts for about half of the total revenue of the U.S. subsidiary, recorded the highest sales ever last year.
Pulmuone established its U.S. subsidiary in 1991 and took its first step into overseas expansion by building a tofu factory in Los Angeles in 1995. In 2016, it acquired the leading U.S. tofu brand "Nasoya," signaling a full-scale expansion of its tofu business. Since then, it has made investments and pursued operational efficiencies across all areas, including production, logistics, sales, and marketing. Starting in 2015, it also expanded its offerings to include Asian noodles. Last year, it improved its performance by securing additional membership channels like Costco and achieving double-digit growth in its distribution channels.
Joo Young-hoon, a researcher at NH Investment & Securities, stated, "Pulmuone's main product, tofu, is expected to see continued global demand as a value-for-money healthy food rather than just a short-term trend," and added, "Pulmuone operates a local factory in the U.S., which also gives it an advantage as it is relatively free from tariff issues imposed by the Trump administration," noting, "The expansion into B2B (business-to-business) markets centered on tofu is also a positive development."
◇"We will improve performance in the overseas food institutional sector using the U.S. as a foothold"
Pulmuone is expanding its overseas business not only in the U.S. but also in China and Japan. As of the third quarter of this year, the accumulated sales for the overseas subsidiaries show that the U.S. subsidiary recorded 329.1 billion won, a 21.1% increase compared to the same period last year (271.9 billion won). The sales of the Chinese subsidiary also slightly increased to 64 billion won from 62.1 billion won during the same period last year. However, the Japanese subsidiary's sales decreased to 72.9 billion won from 84.2 billion won in the same period last year, a decrease of 13.4%.
The operating loss in the overseas food institutional sector has also decreased. The operating loss in this sector fell from 45.5 billion won in 2022 to 22.2 billion won in 2023. The cumulative operating loss up to the third quarter of last year totaled 5.6 billion won. An industry insider remarked, "Overseas food business requires significant investment and time, but after reaching a certain level, profits tend to increase sharply. Pulmuone's long-term investment has allowed it to achieve economies of scale, which is now paying off."
Lee Woo-bong, the newly appointed CEO of Pulmuone, who took office last month, has made global market expansion a key management strategy this year. The proportion of Pulmuone's overseas business sales has increased from 15% in 2019 to 19% in 2022 and is projected to reach 20% in 2024. Analysts expect that the proportion of overseas sales will increase to 21% this year.
Pulmuone plans to complete the expansion of its U.S. tofu factory by September this year. Once the expansion is completed, it will be able to produce 14 million tofu blocks monthly and 168 million blocks annually.
Pulmuone is also showing proactive movements in Japan. The Pulmuone Japan subsidiary was established in 2014 after acquiring the tofu business from Asahi Foods. The tofu bars sold in Japan are becoming popular as healthy snacks at convenience stores. The Japan subsidiary will begin launching new high-quality tofu products, starting with the "Artisan Tofu" next month, and will introduce more tofu products throughout the year. The Chinese subsidiary is also planning to expand its market as it releases three new tofu bar products, alongside its pasta products, which make up 50-60% of its sales.
A Pulmuone official stated, "We aim to achieve performance improvement (turnaround) in the overall overseas business by leveraging the revenue growth and profitability improvements of the U.S. subsidiary, which accounts for two-thirds of total overseas sales," and added, "We plan to actively expand our global business through entry into the European market."