Nongshim disclosed on the 14th that second-quarter sales on a consolidation basis rose 10.2% from a year earlier to 956.1 billion won. Operating profit for the same period increased 47.6% to 59.3 billion won.
First-half sales on a consolidation basis were 1.8901 trillion won, up 7.3% from a year earlier. Operating profit grew 31.7% to 126.7 billion won.
According to Nongshim on the day, growth in overseas operations and improved profitability lifted overall results. Despite slower domestic consumption and intensifying competition, exports and sales at overseas subsidiaries increased.
However, domestic operations continued to face cost pressures. Nongshim's second-quarter standalone sales were 738.4 billion won, up 3.3% from the previous quarter, but operating profit fell 32% to 32.1 billion won.
Sales increased on strong exports, but cost burdens grew as prices of materials such as packaging rose due to the effects of a strong dollar and high oil prices.
A Nongshim official said, "Despite challenging domestic market conditions such as weaker consumption and fiercer competition, growth in exports and overseas subsidiaries' sales and improved profitability drove the rise in overall results."