Nongshim's Q2 operating profit jumps 47.5% on overseas strength

Nongshim posted a sharp rise in second-quarter operating profit, driven by strong overseas performance. Sluggish domestic consumption and intensifying competition weighed on profitability at home, but the company's international business more than offset those pressures.

According to the Financial Supervisory Service's DART system, Nongshim's consolidated operating profit for the second quarter reached 59.3 billion won ($41.9 million), up 47.5% from the same period a year earlier. Sales for the same period rose 10.2% year-on-year to 867.7 billion won.

On a consolidated basis for the first half of the year, sales climbed 7.3% year-on-year to 1.89 trillion won, while operating profit grew 31.7% to 126.7 billion won.

On a standalone basis, operating profit came in at 32.1 billion won, down 32% quarter-on-quarter, while sales edged up 3.3% to 738.4 billion won. Higher exchange rates and elevated oil prices drove up packaging and other input costs, squeezing domestic margins.

"Despite difficult domestic market conditions — including slowing consumption and intensifying competition — sales growth and improved profitability in our overseas business, encompassing both exports and overseas subsidiaries, drove the overall earnings increase," a Nongshim official said.