SPC Samlip Achieves Highest-ever Financial Results in 2021 and Presents Vision of Raising KRW 4 Trillion in Sales in 2024
– In 4Q of 2021, the company grew by 24% in both sales and operating profit, posting earnings surprise for the second consecutive year
– It aims to jump to an ‘omni-food platform company’, and presents a vision of achieving KRW 4 trillion and KRW 110 billion in sales and operating profit in 2024, respectively
– It will strive to develop future growth engines by building up HMR and e-commerce businesses, and expanding into new high value-added markets
SPC Samlip achieved record financial results in 2021 and presented a new management vision.
SPC Samlip announced on February 20, 2022 that both of its sales and operating profit in the fourth quarter of 2021 are tentatively estimated to have grown by 24% over the same period of the previous year. This is the largest-ever result in a quarter, beating the market consensus for the second consecutive year. Annual sales and operating profit are estimated to have reached KRW 2.947 trillion and KRW 65.8 billion in 2021, growing by 15.9% and 28.6% year-on-year, respectively.
Both sales and operating profit of the company in 2021 are analyzed to have recorded robust results as the bakery and food business, two pillars of its businesses, grew evenly. Moreover, sales in its online business recorded KRW 96.3 billion, a growth of 133% over the previous year, based on the expansion of its online distribution platform.
SPC Samlip also made public a new management target of achieving KWR 4 trillion and KRW 110 billion in consolidated sales and operating profit in 2024, respectively, by upgrading its business with an ‘omni-food platform’ that embraces bakery, foods, online and offline service, B2B and B2C.
As part of this strategy, the company will concentrate efforts on the food business by expanding the home meal replacement (HMR) category and reinforcing the online channel through active digital transformation. It will also accelerate the creation of a new high value-added market of food tech.
Initially, the company aims to achieve KRW 250 billion in sales in the food business by 2024 by augmenting the HMR portfolio focused on ‘health, convenience and premium’. It will further solidify the market dominance of major HMR products, including sandwiches and salads, while actively promoting individual brands, such as Glücks Schwein (processed meat products), and I’m Baker (home baking). And, it will enter the frozen HMR product market under the City Deli brand.
The company will also reinforce online business. It intends to increase sales of online business to KRW 300 billion by 2024 by upgrading ‘Sangrok Wallga’, a B2B-based ingredient distribution platform, to a direct-to-customer (D2C) distribution platform, and actively expanding early morning delivery and live commerce businesses.
In addition, the company will target the high-valued premium market by launching food tech business like ‘JUST Egg’ and aggressively promoting eco-friendly brands, such as ‘Chobani’, while strengthening overseas business by intensively developing Samlip Hopang (steamed bun), Samlip Hotteok (Korean pancake), Hi-myeon (noodle) and Yakgwa (honey cookie) as export-oriented brands.
“We will realize the 2024 vision by concentrating strenuous efforts on securing future growth engines with a business strategy that reflected trends in changing consumers and distribution environment,” said Hwang Jong-hyeon, CEO of SPC Samlip. “We will continue to strive for developing differentiated technologies by increasing investment in research and development while raising the value of the company and shareholders by reinforcing environment, society and governance (ESG) management that fosters healthy dietary culture at the forefront.”
SPC Samlip held a corporate briefing for institutional investors and analysts in Korea and abroad where Hwang Jong-hyeon, CEO of the company, presented its management vision.
