Samyang Foods (003230) Q2 2024 earnings summary

Executive summary

• Achieved strong revenue and profit growth, driven by increased overseas demand, especially in the US, Europe, and China, and favorable exchange rates.

• Expanded export portfolio and strengthened global presence, with significant gains in new markets and the Buldak brand.

• Enhanced operational efficiency and profitability through cost structure improvements and capacity expansion.

Financial highlights

• Q2 2024 revenue reached 4,244억원, up 48.7% year-over-year and 10.0% sequentially; first half 2024 revenue was KRW 810.2 billion, up 52.6% year-over-year.

• Operating income for Q2 was 895억원 (OPM 21.1%), up 102.9% year-over-year; first half operating profit was KRW 169.6 billion, up 15% year-over-year.

• Net income for Q2 was 703억원 (NPM 16.6%), up 101.9% year-over-year; first half net income was KRW 137.1 billion.

• EBITDA margin improved to 23.6% in Q2 2024 from 13.0% a year earlier.

• Cash and cash equivalents increased to KRW 352.7 billion.

Outlook and guidance

• Continued focus on expanding export markets, especially in the Americas, Europe, China, and Indonesia.

• Ongoing investment in production capacity and automation, including construction of Miryang Plant 2.

• Strategic establishment of a European sales subsidiary to enhance market share and supply chain agility.

• Further growth expected from new product launches and premiumization.