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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul, August 19, 2025 – Major Korean food companies reported weaker second-quarter earnings as sluggish domestic consumption and rising costs weighed on profitability.
CJ CheilJedang posted revenues of KRW 4.32 trillion (down 0.2% YoY) and operating profit of KRW 235.1 billion (down 11.3%). Its food division was hit hardest, with domestic sales falling 5%, despite 3% growth overseas.
Lotte Chilsung Beverage saw operating profit grow slightly to KRW 62.4 billion (+3.5%), but revenues slipped 1.1% to KRW 1.09 trillion. Overseas subsidiaries grew 15.2%, offsetting declines of 8.5% and 6.5% in domestic beverage and liquor sales.
Daesang reported revenues of KRW 1.08 trillion (+2.1%) but operating profit of KRW 40.8 billion (-8.1%). Its food division sales rose 5.9%, but operating profit plunged 32.3%.
Lotte Wellfood logged revenues of KRW 1.06 trillion (+1.9%) but operating profit dropped 45.8% to KRW 34.3 billion, citing sluggish domestic demand, heavy rains, and raw material cost pressures.
Nongshim delivered revenues of KRW 867.7 billion (+0.8%) and operating profit of KRW 40.2 billion (-8.1%), falling short of market expectations.
Ottogi saw revenues grow 5.0% to KRW 920 billion, but operating profit declined 26.8% to KRW 45.1 billion, reflecting weak domestic sales.
Samyang Foods was a standout, with revenues of KRW 553.1 billion (+30.3%) and operating profit of KRW 120.1 billion (+34.2%), fueled by global demand for its Buldak spicy noodles.
According to Statistics Korea, the nation’s retail sales index fell 0.2% year-on-year in Q2, marking 13 consecutive quarters of decline – the longest streak since records began in 1995.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
