SEOUL, KOREA - The operating profit of top-30 food companies for this year to date has declined almost 20 percent from the same period last year.

 

This is, industry analysts said, largely due to direct or indirect price controls imposed by the government, as well as to the protracted recession.

 

According to the electronic disclosure system of the Financial Supervisory Service on December 15, operating profit (consolidated) of the largest 30 food and beverage companies for the nine-month period of this year was 2,361.0 billion won, down 19.4 percent from 2,928.0 billion won a year ago.

 

For example, CJ CheilJedang, the largest food company, saw its operating profit plunge 42.6 percent to 279.9 billion won for the January-September period. The operating profit of KT&G, former state-run tobacco monopoly, fell 6.0 percent during the same period. Other large food and beverage companies such as Lotte Confectionary (-33.9%), Hite-Jinro (-31.6%), Nongshim (-28.0%), Ottogi Co. (-5.2%), Daesang (-9.8%), Dongwon Industry (-13.5%), and TS Corp. (-25.4%) suffered a setback in their operating profits.

 

For the same nine-month period, net profit of the top-30 companies also shrank 21.9 percent to 1,523.9 billion won from 1,951.9 billion won. Their aggregate sales revenue, however, inched up by 2.3 percent to 33,401.9 billion won from 32,651.3 billion won a year ago.