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Nongshim net up 53.4 pct on global popularity of instant noodles

Earnings 14:35 August 16, 2022

SEOUL, Aug. 16 (Yonhap) -- South Korean instant noodle maker Nongshim Co. said Tuesday its second-quarter net profit rose 53.4 percent from a year earlier, thanks to growing sales of its instant noodles in global markets.

Nongshim logged a net profit of 28 billion won on a consolidated basis for the three months ending in June, compared with 18.2 billion won a year earlier, the company said in a statement.

The noodle maker attributed the net profit increase to its robust performance overseas, where sales grew 20.3 percent on-year.

Its flagship instant noodles Shin Ramyun led sales, along with Neoguri and Chapagetti -- the two instant noodle products used to make the Chapaguri dish featured in South Korea's first Oscar-winning film "Parasite."

By country, sales grew the most in Canada, rising 40.2 percent, followed by the United States with 30.2 percent and China with 19 percent.

Operating profit plunged 75.4 percent on-year to 4.3 billion won in the cited period, while sales grew 16.7 percent on-year to 756.2 billion won.

"Our operating profit decreased in spite of a growth in sales due to hikes in raw material prices, transportation fees and other expenses, as well as a weak South Korean currency against the U.S. dollar," a company official said.

In the South Korean market alone, the company shifted to an operating loss of 3 billion won in the second quarter from an operating profit of 7.3 billion won during the same period last year.

It is the first operating loss in 24 years due to hikes in raw material prices and other expenses.

Nongshim net up 53.4 pct on global popularity of instant noodles - 1

fairydust@yna.co.kr
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