[News Space=Reporter seungwon lee] In the first half of 2025, the rankings of operating profit rates among listed domestic food and beverage companies were split by an 'unprecedented' difference.

While Samyang Foods and Orion, which have expanded into the global market, have 'run away' with double-digit high-profit structures, Pulmuone and Lotte Welfood, which are highly dependent on the domestic market, have remained at the bottom.

By compiling the Financial Supervisory Service's electronic disclosure system, corporate performance data, securities firm reports, and statistical agency information, the average operating profit rate of 12 domestic food companies in the first half of the year was found to be 7.6%.

Samyang Foods ranked first with an operating profit margin of 23.5%, followed by Orion with 16.0%. HiteJinro ranked third through fifth with 10.1%, Ottogi with 5.6%, and Binggrae with 5.6%.

6th to 12th place were Nongshim 5.5%, Dongwon Industries 5.5%, Daesang 4.4%, Lotte Chilsung 4.4%, CJ CheilJedang 3.9%, Lotte Welfood 2.5%, and Pulmuone 1.9%.

Samyang Foods and Orion achieve double-digit operating profit margins thanks to overseas market strength.

Samyang Foods surpassed KRW 1 trillion in sales in the first half of 2025 and achieved an operating profit margin of 23.5%. With overseas sales accounting for a staggering 79.6%, the "globalization" of K-food ramen effectively drove profitability. The brand power of Samyang Buldak Bokkeum Myeon and its regional diversification strategy (North America, China, Southeast Asia, and Europe) led to tangible results.

Orion also achieved an operating profit margin of 16.0%. Thanks to the strong performance of its overseas subsidiaries in China, Vietnam, and Russia, and the popularity of snacks like Turtle Chips and Choco Pies, Orion increased its overseas sales share to 63-68%. Localization strategies and the expansion of premium product lines in overseas markets were crucial in maintaining its operating profit margin.

Lotte Welfood and Pulmuone, burdened by their reliance on the domestic market, rank last in profitability.

Meanwhile, Pulmuone and Lotte Welfood remained at the bottom of the rankings with operating profit margins of 1.9% and 2.5%, respectively. Despite first-half sales of KRW 1.6326 trillion, Pulmuone's operating profit was only KRW 30.8 billion. Due to its low-margin structure, which relies on fresh food (tofu, vegetables, and fresh noodles), its gross profit margin was only 24.3%. However, fixed costs such as logistics (7%), selling, general, and administrative (SG&A) expenses (14.2%), and labor costs are significant. While selling KRW 100 worth of an item yields KRW 24 in profit, after deducting all expenses, the actual profit is only KRW 2.

Lotte Welfood also recorded KRW 2.0394 trillion in sales, operating profit of KRW 50.7 billion, and an operating profit margin of 2.5%. Rising costs, including rising raw material costs, a sharp increase in labor costs (up 13%), the prices of key raw materials like cocoa, a rising exchange rate, and restructuring, continued to pressure profitability. Although the company raised prices of key products (Pepero, Ghana, World Cone, etc.), cost pressures more than offset these increases. Overseas sales account for only 23% of the company's total, with only India (9%) and Kazakhstan (6.3%) being significant markets.

In particular, while Samyang Foods and Orion maintained an overwhelming 'top two' structure in terms of external growth and operating profit margin, domestic-focused Pulmuone and Lotte Welfood were unable to avoid deteriorating profitability due to low growth, restrictions on selling price increases, and the burden of fixed costs.

Overseas sales ratio is the key to profitability.

This first-half performance reinforced the assessment that we are entering an "era of export-oriented companies." The global popularity of K-food has further exacerbated the polarization of profitability. Samyang Foods, with overseas sales approaching 80%, earned more overseas than domestically. Conversely, Pulmuone, with a domestic reliance of 80%, and Lotte Welfood, with a domestic reliance of 77%, suffered from disappointing performance, hampered by low-margin structures and slow domestic market growth.

Securities and industry observers predict that overseas market performance will remain key to improving corporate performance in the second half of 2025. While the domestic market-driven model, once dominated by the Korean economy, faces threats to profitability, export-oriented food companies that successfully leverage localization strategies, brand power, and regional diversification are achieving a literal "super-gap in profitability."

Hana Securities predicted, "Major food and beverage companies' domestic sales growth was limited to around 1%. Overseas performance will continue to be a key variable in improving performance in the second half of the year."

A distribution industry insider said, "The cases of Pulmuone and Lotte Welfood, which are suffering from declining profitability due to their reliance on domestic sales, are represented by structural limitations, cost burden, and restrictions on selling price increases." On the other hand, Samyang Foods and Orion, which succeeded in increasing the proportion of exports, solidified their competitiveness in the global market with high-margin premium products and localization strategies.

This marks a time when the future of the food and beverage industry must increasingly be answered by seeking answers in overseas markets. The first half of the year clearly demonstrated that the globalization of K-food will ultimately be the most crucial variable determining the fate of companies.