[Edaily Reporter Kim Ji-woo ] SPC SAMLIP(005610), a subsidiary of Sangmidang Holdings responsible for confectionery and food sales and distribution, is revising its growth strategy with a focus on expanding overseas markets and restructuring its business. With operating profit halved last year and the company slipping into the red in the first half of this year, restoring profitability has become urgent. The company plans to achieve 500 billion won in overseas sales by 2030 and consolidate its foundation by divesting businesses that struggle to turn a profit.

SAMLIP announced on the 30th that it held an investor relations (IR) briefing for securities analysts and institutional investors on the 29th to present its mid- to long-term management strategy. The company’s targets for 2030, on a standalone basis, are revenue of 2.1107 trillion won, operating profit of 170 billion won, and an operating profit margin of 8%. The company will focus on global expansion, e-commerce, frozen dough, and product innovation as its core growth drivers, while concentrating on improving profitability and restructuring its business over the next 18 months.

This strategic move is seen as part of a broader effort to redefine the role of the holding company, Sangmidang Holdings. Launched in January of this year, Sangmidang Holdings outlined a strategy focused on global growth, investment portfolio management, and research and development (R&D). SAMLIP has also transitioned to a co-CEO system led by Do Se-ho and Jeong In-ho to strengthen expertise in production, safety, and global operations. This structure allows the holding company to chart the course for growth while the operating companies enhance their execution capabilities.

Rebounding earnings is the immediate challenge. SAMLIP’s consolidated revenue last year stood at 3.3705 trillion won, down 1.7% from the previous year. Operating profit fell 59.2% to 38.7 billion won. The operating profit margin dropped from approximately 2.8% in 2024 to about 1.1% last year. In other words, the company’s ability to generate profits despite revenue in the 3 trillion won range has weakened.

In the first half of this year, the company posted a loss despite an increase in revenue. Consolidated revenue reached 1.6601 trillion won, a 1.3% increase compared to the same period last year, but operating profit turned from a 24.8 billion won surplus to a 4.2 billion won deficit. The food business posted an operating loss of 9.4 billion won, and operating profit for the flagship bakery business also fell by 86.9% to 2.3 billion won. Rising raw material prices, exchange rate fluctuations, and costs associated with safety enhancements—such as shifts in shift schedules—weighed on profitability.

The company is pinning its hopes on its overseas business as a breakthrough. It plans to increase global sales—currently around 75 billion won—to 500 billion won by 2030, a rise of approximately 6.7 times. The company will expand exports of baked goods and K-desserts by applying the sales experience gained at Costco in the U.S. to other countries and distribution channels. The key will be to extend the success of securing shelf space for certain products to all sales regions and product categories.

The company has set a target to increase sales related to Costco in the U.S. from 30 billion won this year to 150 billion won by 2030. It plans to expand the number of stores carrying its products from 300 to more than 900 globally and increase the number of product lines from 2 to 6. The strategy is to grow the overseas sales base by simultaneously expanding both the sales network and the product lineup.

For the food business, the company has decided to prioritize profitability over revenue growth. The company will strengthen its position in the sandwich and salad markets and expand its business into B2B supply of low-sugar and wellness sauces, as well as “K-sauces” and ready-to-eat meals. In the meat processing sector, it will focus on B2B channels to improve annual profitability by approximately 2.5 billion won. The company also announced plans to further improve profitability by 14 billion won through measures such as divesting non-core businesses.

The company will also strengthen policies to enhance shareholder value. It has set a medium- to long-term dividend payout ratio target of 30%. The company intends to strengthen communication with the market by disclosing key performance indicators (KPIs) and financial results on a quarterly basis.

Safety management measures have also been detailed. SAMLIP plans to complete 10 major safety initiatives by the end of the year, including improvements to high-risk facilities and the implementation of standardized on-site work procedures. The company explained that its cumulative accident rate for January through August of this year was 0.48%, lower than the food industry average of 0.99%.

Jeong In-ho, CEO of SAMLIP, stated, “The next 18 months will be a crucial turning point for SAMLIP as we fully embark on profitability-focused structural reforms and lay the groundwork for growth.” He added, “Through the expansion of our global business and innovation in our business structure, we will establish a sustainable growth system and work to increase both corporate value and shareholder value.”