Namyang Dairy Products(003920) said on the 14th that operating profit on a consolidation basis in the second quarter this year was 1.278 billion won, up 38.1% from a year earlier. Revenue for the same period rose 11.2% to 258 billion won, and net profit jumped 75.9% to 1.5 billion won.
Cumulative first-half revenue on a consolidation basis was 483.2 billion won, up 7.9% from a year earlier, and operating profit was 1.8 billion won, up 79.5%. Net profit surged 276.7% to 7.8 billion won.
Overseas business growth stood out. Namyang Dairy Products' second-quarter overseas revenue was 30.1 billion won, up 168.7% from 11.2 billion won a year earlier. It also rose 83.4% from 16.4 billion won in the first quarter, expanding quarterly growth.
The effect of diversifying export items centered on infant formula to include freeze-dried (FD) products, French Cafe coffee mix and cup coffee, and Take Fit has begun in earnest.
Buoyed by this growth, first-half overseas revenue was 46.6 billion won, up 130% from a year earlier, and the share of overseas revenue in total sales expanded from 4.5% to 9.6%.
As the scale of growth categories such as protein and processed milk expanded, the sales portfolio also diversified. The share of milk products in total first-half revenue fell 5.5 percentage points from 54.4% a year earlier to 48.9%, while other categories including Choco Emong and Take Fit expanded 4.9 percentage points from 24.3% to 29.2%. Formula also rose from 21.3% to 21.9%.
In particular, revenue from the product group centered on the protein brand "Take Fit" increased 76.1% from a year earlier in the first half. Revenue from coffee mixes for flagship brands such as French Cafe and Lukas Nine also rose 11.5% from a year earlier.
The expansion of growth categories also led to improved results in key distribution channels. Revenue from the convenience store (CVS) channel increased 10.1% from a year earlier, and revenue from the B2B (FS) channel centered on franchise cafes and the foodservice market also rose 11% from a year earlier.
Results for subsidiaries also improved. First-half revenue at subsidiary Baekmidang was 16 billion won, up 34.8% from a year earlier, and operating profit swung from a loss in the first half of last year to a 560 million won surplus, while net profit also turned to a 330 million won surplus from a loss.
A Namyang Dairy Products official said, "In the first half, the expansion of exports and the performance of growth portfolios such as protein began in earnest, improving both revenue and profitability," adding, "In the second half, we will further solidify a foundation for sustainable growth by expanding our overseas business, strengthening the competitiveness of growth categories, and advancing key distribution channels."