Samyang Foods said on the 14th that second-quarter sales on a consolidation basis rose 39.3% from a year earlier to 770.3 billion won. Operating profit for the same period increased 46.7% to 176.2 billion won.
Overseas business drove earnings growth. Second-quarter overseas sales rose 46.7% on-year to 645.8 billion won. Overseas sales exceeded 600 billion won on a quarterly basis for the first time, marking an all-time high. Overseas sales accounted for 83.9% of total sales.
With global demand for the Buldak brand continuing, major regions including the Americas, China and Europe posted double-digit sales growth rates.
Sales in the Americas rose 54% on-year to 203.6 billion won. The company expanded mainstream and ethnic distribution channels in the United States, and sales increased in Central American markets such as Mexico.
Sales in China rose 44% during the period to 181 billion won. In addition to existing distribution networks, expanding points of sale to channels such as snacks led to higher sales.
Sales in Europe increased 61% on-year to 80.6 billion won, the highest growth rate among key regions. Increases in sales in major countries such as Germany and France, along with expansion into more European markets, contributed to the gains.
Profitability also improved. Samyang Foods' second-quarter operating margin was about 23%, staying in the 20% range for six straight quarters. Changes in overseas distribution channels, improved production efficiency and foreign exchange effects contributed to higher operating profit.
The Buldak brand surpassed a cumulative 10 billion units sold at the end of May. Samyang Foods plans to expand overseas subsidiaries by region and production infrastructure at home and abroad to meet rising overseas demand.
A Samyang Foods official said, "We continued sales growth centered on overseas business," and added, "We plan to strengthen overseas subsidiaries by region and production infrastructure at home and abroad to meet global demand."