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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] Several food companies, including Ottogi and Orion, have faced significant challenges due to sluggish domestic demand, with both reporting sharp declines in profits for the third quarter.
Ottogi announced on the 14th that its consolidated operating profit for the third quarter fell by 23.4% to 63.6 billion KRW compared to the same period last year. Its sales decreased slightly by 0.5% to 904.1 billion KRW.
Orion also saw a 2.6% drop in its third-quarter consolidated operating profit, which amounted to 137.1 billion KRW. Despite a 1.1% increase in sales, reaching 774.9 billion KRW, Orion’s domestic performance showed mixed results. The sales of its South Korean subsidiary fell by 0.4% to 271.1 billion KRW, while operating profit rose by 2.0% to 43.8 billion KRW. However, Orion's key Chinese subsidiary reported declines in both sales and operating profit by 2.2% and 12.7%, respectively.
On the other hand, food companies like Daesang and CJ CheilJedang performed relatively better despite domestic sluggishness.
Daesang posted a 3% increase in third-quarter sales, while operating profit surged by 30.3% due to improved profitability in its material business, although its food segment saw a drop in operating profit.
CJ CheilJedang, excluding the performance of its subsidiary CJ Logistics, reported a slight 0.4% increase in operating profit to 276.4 billion KRW, but its sales fell by 1.1% to 4.62 trillion KRW. In its food segment, both sales and operating profit declined, with food sales down by 1.1% to 2.97 trillion KRW and operating profit dropping 31.1% to 161.3 billion KRW. While overseas sales in the food sector grew by 5.1%, domestic sales fell by 6.1%, largely due to weak domestic consumption and rising cost pressures.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
