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Photo: Pulmuone Website |
[Alpha Biz= Paul Lee] KB Securities has assessed Pulmuone's performance, stating that the company is improving its overseas business structure, particularly due to steady growth in U.S. revenue.
Pulmuone reported fourth-quarter revenue of 817.7 billion KRW, a 7.3% increase from the same period last year. Operating profit surged by 128.1% to 25.2 billion KRW. By segment, overseas food manufacturing and distribution saw an 18.9% increase to 166.5 billion KRW, food service distribution rose by 16.5% to 228.8 billion KRW, health care manufacturing and distribution grew by 3.8% to 26.6 billion KRW, and domestic food manufacturing and distribution decreased by 1.0% to 395.8 billion KRW.
Despite the decline in domestic food manufacturing due to ongoing product and channel improvements aimed at protecting profitability, strong growth in overseas food manufacturing and food service distribution helped the company continue its growth. For the full year, Pulmuone reported a 7.4% increase in revenue to 3.2 trillion KRW and a 46.8% increase in operating profit to 91 billion KRW, marking its highest-ever annual revenue and operating profit. However, despite these positive results, the company did not manage to improve its financial structure, such as reducing net borrowings.
The overseas food manufacturing segment showed strong performance in the fourth quarter of 2024, with a 18.9% revenue increase to 166.5 billion KRW and a reduced operating loss of 900 million KRW, an improvement from the previous year's operating loss of 6.9 billion KRW. U.S. and China revenues grew by 23.2% to 115.3 billion KRW and 26.9% to 24.7 billion KRW, respectively, showing strong growth. The Japanese channel saw a slight decline of 1.2% to 25.4 billion KRW due to product mix improvements, but its loss was reduced.
Looking ahead, Pulmuone plans to expand its presence in Southeast Asia, including Vietnam, Singapore, Malaysia, and Thailand, while conducting market tests in Western Europe. The company's food service distribution segment continues to see both growth and improved profitability, with fourth-quarter revenue rising by 16.5% to 228.8 billion KRW and operating profit soaring by 613.8% to 5.9 billion KRW.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
