Namyang Dairy Products disclosed on the 15th that it posted an operating profit of 520 million won on a consolidation basis in the first quarter. That was up 572% from a year earlier. Revenue rose 4.4% over the same period to 225.2 billion won.
Net profit climbed 419% to 6.3 billion won. Net profit increased as 8.27 billion won in compensation escrow related to embezzlement and breach of trust by former Namyang Dairy Products Chairman Hong Won-sik and his family was reflected as other non-operating income.
Namyang Dairy Products said performance recovery has gathered pace thanks to a profitability enhancement strategy focused on overhauling its business and product portfolio and improving operational efficiency after the shift in its management system. Expansion of growth channels centered on exports and business-to-business (B2B) transactions drove the improvement in results.
First-quarter export results came to 16.4 billion won, up about 81% from a year earlier. Powdered milk exports centered on Cambodia and Vietnam rose about 54% year over year, while exports in other institutional sectors, including coffee (freeze-dried and instant coffee) and protein, expanded about 136%.
By brand, first-quarter revenue for the protein brand "TakeFit" grew 72% from a year earlier. The growth trend continued with lineup expansions such as TakeFit Monster, Max, and Pro in the second quarter of last year and entry into local distribution channels in Hong Kong, Mongolia, and Kazakhstan at the end of last year.
In the coffee product category, first-quarter revenue for French Cafe Cafe Mix increased 14% from a year earlier, and processed milk revenue, centered on Choco Emong and Matcha Emong, rose 7%.
The ice cream and coffee brand "Baekmidang" maintained its growth on the back of business structure reorganization effects. First-quarter revenue was 7.6 billion won, up 44% from a year earlier. Operating profit turned to a surplus at 120 million won.
A Namyang Dairy Products official said, "We are continuing to improve profitability by focusing on restructuring the product portfolio, streamlining channels, and expanding growth categories," and added, "We plan to strengthen our competitiveness in the global market by expanding overseas operations centered on growth products such as powdered milk, coffee, and protein."