Nongshim Co., Ltd. reported declines in both revenue and operating profit, as sluggish performance in the domestic market offset strong growth in its overseas operations.
Despite the rising global popularity of "K-Ramen," the company saw steady growth in overseas markets (excluding China), with sales increasing in Vietnam (up 20.4%), Japan (up 20.3%), Australia (up 15.4%), and the United States (up 1.4%). However, the domestic market was severely impacted by the economic slowdown.
Amid a shrinking domestic market, significant declines were observed in the snack (down 6.6%) and beverage (down 13.8%) segments, while online sales plummeted by more than 20%.
As a result, increased spending on promotional activities to counter the domestic slump, combined with rising export-related costs such as sea freight charges, significantly eroded profitability.
Nongshim aims for a turnaround in the fourth quarter by promoting its new product, Shin Ramyun Toomba, which has received positive feedback in the domestic market.
A company representative stated, "We plan to officially launch Shin Ramyun Toomba in the global market during the fourth quarter. Additionally, the recently expanded cup noodle production line at our U.S. subsidiary, which began operations last month, is expected to contribute to performance improvements."
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