Overseas sales make up 83.5% of revenue, led by 36.6% jump in the US
Samyang Foods’ quarterly operating profit hit a record high in the July-September period, jumping nearly 50 percent on-year on robust Buldak sales in the US and China and putting the company within reach of 3 trillion won ($2.2 billion) in annual revenue.
In a regulatory filing Friday, the company reported preliminary third-quarter revenue of a record 791.8 billion won, up 25.3 percent from a year earlier. Operating profit jumped 49.9 percent to 196.2 billion won.
With cumulative revenue of 2.28 trillion won through the third quarter, Samyang needs just over 720 billion won in the fourth quarter to join the 3 trillion won club. Industry watchers expect the company to surpass that threshold, citing continued strong overseas demand for Buldak.
International revenue rose 29.4 percent year on year to a quarterly record of 660.8 billion won, accounting for about 83.5 percent of total sales. Domestic revenue grew 7.9 percent to 131.1 billion won.
Buldak sales continued to grow overseas after cumulative sales surpassed 10 billion units in the second quarter, supported by an expanded global distribution network and improved production efficiency at domestic plants, the company said.
The US remained Samyang’s largest overseas market, with revenue at its American subsidiary surging 36.6 percent to 212.5 billion won. Growth was driven by expanded distribution through mainstream retailers such as Walmart in the US, alongside steady sales gains in Mexico.
China followed closely, with revenue rising 13.2 percent to 208.9 billion won as Samyang expanded its presence in snack channels. Europe, while a smaller market, posted the fastest growth, with sales jumping 65.5 percent to 86.9 billion won.
"Expanding distribution in key markets such as the US and China sustained export growth," the company said in a statement. "By improving efficiency at our domestic plants and streamlining our global distribution network, we will continue to meet growing overseas demand."
The company added that profitability remained resilient despite external uncertainties. Samyang posted an operating margin of 24.8 percent, marking its seventh consecutive quarter above 20 percent, supported by an improved sales channel mix in its key markets.
minmin@heraldcorp.com
