KGC Ginseng Corporation (hereafter Ginseng Corporation) disclosed on the 5th that it recorded an operating profit of 102.8 billion won last year. That was up 5% from a year earlier. This appears to reflect a profitability-focused, solid-management strategy.
According to parent company KT&G's earnings release, the operating profit of Ginseng Corporation's health functional foods institutional sector last year came to 102.8 billion won. Despite last year's pullback in consumer spending, Ginseng Corporation said performance reflected improvements across the business, including high-margin core channels such as duty-free and online, and the cultivation of new materials and new functional products.
This year, Ginseng Corporation plans not only to launch high-margin differentiated product lines centered on strategic channels such as duty-free and online, but also to carry out a profitability-focused management strategy. In particular, it will expand product launches in overseas markets and build a locally tailored product business portfolio, while moving to strengthen research and development (R&D) competitiveness for scientific efficacy claims.
A Ginseng Corporation official said, "Last year, through the advancement of channel operations and expense efficiency, the shift to a profitability-focused business structure produced visible results," and added, "This year, we will continue to strengthen our medium- to long-term growth base by simultaneously reinforcing core channels and products, and R&D competitiveness."