Samyang Foods (003230) Q3 2024 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q3 2024, driven by robust global demand and expansion in overseas markets, especially in the Americas, Europe, and China.

• 2024 Q3 cumulative sales rose 44.22% year-over-year to KRW 1,249.2 billion, with operating profit up 74.2% to KRW 256.9 billion and net profit at KRW 195.9 billion.

• Overseas subsidiaries, particularly in the US and China, posted record sales, with US sales up 126.3% and China achieving its highest quarterly sales.

• The company expanded its global footprint by launching a European subsidiary and increasing investments in production capacity.

• Maintained high profitability despite increased labor and logistics costs due to business expansion.

Financial highlights

• Q3 2024 consolidated revenue: 439 billion KRW, up 30.9% year-over-year and 3.4% sequentially; Q3 cumulative revenue: KRW 1,249.2 billion (+44.22% YoY).

• Operating profit: 87.3 billion KRW (OPM 19.9%) for Q3; cumulative operating profit: KRW 256.9 billion (20.6% margin).

• Net profit: 58.7 billion KRW (NPM 13.4%) for Q3; cumulative net profit: KRW 195.6 billion (15.7% margin).

• EBITDA margin reached 22.6% in Q3 2024.

• Cash and cash equivalents at period-end: KRW 423.5 billion (Q3) and KRW 390.2 billion (cumulative), supporting future investments.

Outlook and guidance

• Continued global ramen market expansion, with export regions diversifying beyond Asia to the Americas and Europe.

• Sustained growth expected, led by flagship products, new overseas sales channels, and product launches.

• Plans to diversify product portfolio, invest in premium and plant-based foods, and strengthen ESG initiatives.

• Ongoing investments in production facilities, including the new plant in Miryang, to support future demand.