Crown and Haitai Confectionery each saw a 30% decrease in operating profit in the third quarter… “Cost burden”

The operating profits of Crown Confectionery [264900] and Haitai Confectionery [101530], affiliates of Crown Haitai Holdings [005740], each decreased by more than 30% in the third quarter of this year compared to the same period last year.

Crown Confectionery announced on the 13th that its operating profit on a separate basis in the third quarter of this year was 1.9 billion won, a 31.7% decrease from the same period last year. Sales decreased by 2.1% to KRW 106.2 billion, and net profit decreased by 46.6% to KRW 1 billion.

Haitai Confectionery and Food's consolidated operating profit in the third quarter of this year was 5.5 billion won, a 33.7% decrease from the same period last year. Sales decreased 2.8% to KRW 155.9 billion, and net profit decreased 35.0% to KRW 2.8 billion.

Cumulative sales in the third quarter of this year amounted to 473.7 billion won, a 1.9% decrease from the same period last year. During the same period, cumulative operating profit decreased by 20.5% to 25.5 billion won.

An official from Crown Haitai said, "Operating profit has decreased due to the cumulative cost burden due to the increase in the price of major raw materials such as naphtha and the cost of imported raw materials from overseas," and added, "We are strengthening our efforts to reduce internal costs, and we expect the effect of the price adjustment to be positively reflected in future performance."