Ramen, Liquor Makers Report Sluggish 2Q Results amid Economic Recession

SEOUL, KOREA- Korea’s ramen and liquor companies, which achieved a steady growth despite economic slowdown, reported sluggish growth in the second quarter of this year.Nongshim, for example, which leads the domestic ramen market, recorded an operating profit of 12.8 billion won in the second quarter, down 11.3 percent year on year. Its non-consolidated sales also fell by 5.1 percent to 445.1 billion won.

Hite Jinro, which holds brands like soju Chamiseul and beer Hite and Dry, also saw its consolidated sales fall to 490.6 billion won in the second quarter, down 8.8 percent from a year ago. Its net profit also plunged by 65.5 percent to 18.5 billion won, although its operating profit grew by 17.7 percent to 42.6 billion won.

In general, the sales of ramen and liquors were brisk even in times of recession. Industry watchers said that the second-quarter ramen and liquor sales fell due to a prolonged economic downturn and the government’s regulation on opening hours of discount stores.