Samyang Foods Inc., the South Korean company renowned for its globally popular Buldak spicy ramyeon, has experienced a significant rise in its share value following a robust first-quarter earnings report. As of 2:30 p.m. on May 16, the company’s shares were trading 20 percent higher at 1.19 million won (US$855), considerably outperforming the broader Korea Stock Price Index (KOSPI), which saw a modest increase of 0.2 percent.
The surge in share value came after Samyang Foods reported a 49 percent year-on-year increase in net profit for the January to March period. Operating profit climbed 67 percent compared to the previous year, reaching an all-time high of 133.99 billion won. The company also recorded a 37 percent rise in sales, hitting a record high of 529.01 billion won. These financial results highlight the company’s strong performance in overseas markets, which accounted for more than 80 percent of its total revenue.
The company’s export performance has been particularly impressive, with last year marking the first time exports exceeded the 1 trillion-won mark. This achievement was driven by robust sales of the Buldak ramyeon series, particularly in the United States and China. Looking ahead, Samyang Foods aims to surpass the 1 trillion-won mark in overseas sales again this year, supported by plans to expand its production capacity.
To meet growing global demand, the company currently operates three domestic production plants and plans to open a fourth in the first half of this year. Additionally, Samyang Foods intends to construct its first overseas manufacturing facility in China, with work expected to commence in July. The company already has established business operations in China, Japan, Indonesia, the Netherlands, and the United States.
Samyang Foods’ Buldak Bokkeummyeon, widely known as “fire ramyeon,” continues to be a significant driver of the company’s success. Since its launch in 2012, the hot chicken-flavored instant noodles have sold more than 7 billion units, generating over 4 trillion won in revenue. Approximately 1 billion units are sold annually across 100 countries. The product gained substantial international attention following a viral food-eating challenge in 2014, cementing its status as a global phenomenon.
The company’s strategic expansion and sustained product popularity have positioned Samyang Foods as a prominent player in the global instant noodle market, as evidenced by its strong financial performance and positive market response.
-Yonhap
