[Edaily Reporter Kim Ji-woo ] KYOCHON FOOD&BEVERAGE(339770)achieved revenue growth in the second quarter of this year, driven by increased demand for fried chicken and growth in global and new business ventures. However, operating profit fell by a double-digit percentage as the burden of raw material and supply costs, as well as logistics expenses, increased.

KYOCHON FOOD&BEVERAGE announced on the 7th that its consolidated revenue for the second quarter of this year reached 132.3 billion won, a 4.9% increase compared to the same period last year. Operating profit for the same period fell 15.7% to 7.8 billion won. In contrast, net income rose 13.3% year-over-year to 5.2 billion won.

Cumulative revenue for the first half of the year reached 255.6 billion won, a 2.0% increase compared to the same period last year. In contrast, cumulative operating profit fell 34.4% to 13.1 billion won. Cumulative net income also decreased by 23.3% to 8.6 billion won.

With the supply of raw materials returning to normal, demand for chicken expanded due to the popularity of professional baseball, the World Cup, and the peak season during “Family Month,” driving sales growth. Additionally, the normalization of global store operations and increased sales in new business segments, such as alcoholic beverages, had a positive impact on the improved performance.

The company explained that the decline in operating profit was due to the headquarters absorbing the cost increases for key raw and auxiliary materials resulting from external factors, such as the prolonged avian influenza (AI) outbreak that began in the winter and the political situation in the Middle East. Furthermore, rising selling, general, and administrative expenses—including transportation costs driven by higher international crude oil prices—also impacted profitability.

A representative from KKYOCHON FOOD&BEVERAGE stated, “In the second half of the year, we plan to enhance our brand competitiveness by stabilizing the supply of raw and auxiliary materials and strengthening our menu lineup.” The representative added, “While actively responding to demand during upcoming sports events, the Boknal season, and the year-end peak season, we will continue to drive sales growth and improve profitability through the expansion of our global business and the diversification of our revenue base in new business sectors.”