Seoul: Shares of Samyang Foods Inc., renowned for its popular Buldak spicy "ramyeon," soared nearly 20 percent following the announcement of robust first-quarter earnings. On Friday, the company's shares rose by 19.07 percent, reaching 1.18 million won (approximately US$846), significantly outperforming the broader Korea Composite Stock Price Index (KOSPI), which concluded with a modest increase of 0.21 percent.
According to Yonhap News Agency, the surge in stock value was driven by a 49 percent year-on-year increase in net profit for the January-March period. Operating profit saw a remarkable 67 percent increase on-year, achieving an all-time high of 133.99 billion won, while sales soared 37 percent to a record 529.01 billion won. Notably, Samyang Foods derived over 80 percent of its total revenue from international markets.
Last year marked a significant milestone for the company as its exports exceeded the 1 trillion-won threshold for the first time, fueled by strong sales of the Buldak ramyeon series, particularly in the United States and China. In a bid to sustain this momentum, Samyang aims to surpass 1 trillion won in overseas sales this year by augmenting its production capacity. The company currently operates three domestic plants, with a fourth expected to be completed in the first half of this year.
Further expansion plans include the construction of Samyang's first overseas plant in China, scheduled to commence in July. The company already has business operations in China, Japan, Indonesia, the Netherlands, and the United States. Approximately 1 billion units of Samyang's Buldak Bokkeummyeon, colloquially known as "fire ramyeon," are sold annually across 100 countries, as reported by the company.
Since its introduction in 2012, cumulative sales of the hot chicken-flavored instant noodles have surpassed 7 billion units, generating over 4 trillion won in revenue. The Buldak ramyeon catapulted to global fame after its intense spiciness sparked a viral food-eating challenge in 2014.