The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
  • Hangzhou Asian Games
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Scientists find green way to turn CO2 into fuel with sunlight

  • 3

    BLACKPINK's contract renewal still in limbo

  • 5

    Xi says he will seriously consider visit to South Korea: official

  • 7

    Kim Jong-un's rejection of Russia's food assistance irritates North Korean defectors

  • 9

    INTERVIEWVirtual K-pop group MAVE: is more than just pretty pixels

  • 11

    Korea boosts subsidies to rev up falling EV sales

  • 13

    All-Korean showdowns set up on 1st day of medal race

  • 15

    Disney+ aims to expand investment in original Korean content

  • 17

    Hebrew University students travel to Korea to explore musical landscape

  • 19

    Appellate court upholds 9-yr prison term for man over filming, distributing sexual videos featuring women

  • 2

    N. Korea holds politburo meeting to discuss Kim-Putin summit: KCNA

  • 4

    BTS member Suga begins mandatory military service

  • 6

    Family of 5 found dead in 3 separate locations

  • 8

    Opposition party in turmoil as leader could be arrested on Tuesday

  • 10

    Foreign employees rewarded for contribution to Korea's shipbuilding industry

  • 12

    Russia lodges protest to S.Korean envoy over Yoon's UN speech

  • 14

    Lawmakers want to grill business tycoons over decision to rejoin FKI

  • 16

    Arrest warrant hearing for DPK leader Lee to be held Tuesday

  • 18

    Yoon signs off on plan to waive expressway tolls during Chuseok holiday

  • 20

    Gov't reviews changing description of Fukushima wastewater

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
Sun, September 24, 2023 | 20:13
Companies
CJ, Samyang outperform Nongshim, Ottogi, Daesang
Posted : 2022-11-16 15:33
Updated : 2022-11-17 11:24
Kim Jae-heun
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
A worker checks dumplings at CJ CheilJedang's production facility in Frankfurt, Germany on Oct. 20. Courtesy of CJ CheilJedang
A worker checks dumplings at CJ CheilJedang's production facility in Frankfurt, Germany on Oct. 20. Courtesy of CJ CheilJedang

Global business key to better bottom line

By Kim Jae-heun

While nearly all major food companies here posted higher sales in the third quarter from a year earlier on the back of steep price increases, their operating profits showed mixed results.

Companies that expanded their global businesses were found to have performed better than their peers who are heavily dependent on the domestic market amid the won's falling value against the dollar and soaring import prices of raw materials.

The firms that generate sales in dollars abroad achieved higher sales numbers in terms of the won and were able to weather skyrocketing raw material costs as they purchase the materials with the dollars they earn overseas.

CJ CheilJedang's sales from July to September surpassed 5 trillion won ($3.75 billion) for the first time, which is up by 21.7 percent compared to the same period of last year. Nongshim's revenue also rose 20.8 percent to 813 billion won, Samyang Foods' sales jumped 30.84 percent to 211.5 billion won, Ottogi's sales increased 16.2 percent to 821.6 billion won and Daesang's sales soared 15.9 percent to 1.01 trillion won.

However, the won's weakness against the dollar and a continued rise in raw material prices affected companies like Nongshim, Ottogi and Daesang, whose operating profits suffered double-digit decreases.

Ottogi saw its operating profit fell 16.5 percent, year-on-year to 44.2 billion won in the third quarter. Nongshim's operating profit also fell 6.2 percent to 27.3 billion won and Daesang's operating profit decreased 4 percent to 34.4 billion won in the same period. The sudden increase in raw material prices had a huge impact on earnings.

A worker checks dumplings at CJ CheilJedang's production facility in Frankfurt, Germany on Oct. 20. Courtesy of CJ CheilJedang
Samyang Foods' production facility in Miryang, South Gyeongsang Province / Courtesy of Samyang Foods

According to the United Nations' Food and Agriculture Organization (FAO), the grain price index rose for the second consecutive months to 152.3 in October. The index averaged below 100 in 2020, but soared to 125.7 last year. Oil prices are also on the rise again following output reductions by the Organization of the Petroleum Exporting Countries.

In addition, the high exchange rate has increased pressure on Ottogi, Nongshim and Daesang that are highly dependent on imports. Companies that achieve a large proportion of sales overseas benefited from the strong dollar.

CJ CheilJedang and Samgyang Foods, which operate businesses overseas, were able to put up a good defense against the strong US dollar. CJ achieved 386.7 billion won in operating profit in the third quarter, up 20 percent, year-on-year. The food giant is actively engaged in business abroad under its Korean traditional food brand "Bibigo." Samyang Foods' operating profit also increased 27.24 percent to 19.3 billion won in the same period. Samyang Foods has recently grown into a company with a higher proportion of overseas sales than domestic sales due to the popularity of its "Buldak Ramen," or hot chicken flavor noodles.

"Companies that have taken root in overseas markets were able to overcome various negative factors with their global purchasing power. Meanwhile, firms that mainly operate in the local market were directly influenced by the weak won and increased raw material costs ― leaving them failing to improve their operating profit," a source at a local food manufacturing firm said. "There are clear limitations for local food companies to grow only in Korea as the country suffers from sluggish consumption as well as a declining population. Food companies will accelerate their global investments such as expanding production facilities overseas to cope with the current situation."


Emailjhkim@koreatimes.co.kr Article ListMore articles by this reporter
 
miguel
Top 10 Stories
1Understanding Korean Modernization Understanding Korean Modernization
2Bears of Joseon part 1: Fanciful tales and deadly claws Bears of Joseon part 1: Fanciful tales and deadly claws
3Exhibition for soldiers highlights North Korea's human rights abuses Exhibition for soldiers highlights North Korea's human rights abuses
4Sil-A overcomes stage fright, and them some Sil-A overcomes stage fright, and them some
5Korea, Saudi Arabia celebrate 93rd Saudi National Day, vow stronger cooperation Korea, Saudi Arabia celebrate 93rd Saudi National Day, vow stronger cooperation
6Bears of Joseon part 2: Behind bars Bears of Joseon part 2: Behind bars
7JTI Korea joins Jongno clean-up JTI Korea joins Jongno clean-up
8Mirae Asset Global Investments' AUM reaches $219 bil. Mirae Asset Global Investments' AUM reaches $219 bil.
9Samsung, SK relieved by revised chip restrictions on ChinaSamsung, SK relieved by revised chip restrictions on China
10CKD Kochon Foundation awards Ukraine health authorities for treating tuberculosis patients amid raging war CKD Kochon Foundation awards Ukraine health authorities for treating tuberculosis patients amid raging war
Top 5 Entertainment News
1TEMPEST gears up to showcase fiery passion TEMPEST gears up to showcase fiery passion
2[INTERVIEW] Yim Si-wan went extra mile to portray legendary athlete in 'Road to Boston' INTERVIEWYim Si-wan went extra mile to portray legendary athlete in 'Road to Boston'
3BLACKPINK's contract renewal still in limbo BLACKPINK's contract renewal still in limbo
4[INTERVIEW] Virtual K-pop group MAVE: is more than just pretty pixels INTERVIEWVirtual K-pop group MAVE: is more than just pretty pixels
5Hebrew University students travel to Korea to explore musical landscape Hebrew University students travel to Korea to explore musical landscape
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group