Novarex Q2 Revenue and Operating Profit Highest Ever...Export share exceeds 46%
Aug 14, 2025
|
As a result, cumulative consolidated sales in the first half of 2025 were KRW 189.8 billion and operating profit was KRW 19.4 billion, up 37.2% and 78.2% year-on-year, respectively.
The share of exports, which was only 10% in the first half of 2022, rose to 31% in 2024, followed by a fast rise to 41% in the first half of this year. In particular, achievements in strategic markets such as China and Southeast Asia have been remarkable, and the expansion of partnerships with global distribution companies is leading to full-fledged fruits.
This achievement is interpreted as the result of strengthening ▲ manufacturing competitiveness, ▲ customer-customized proposal capability, ▲ individually recognized raw materials that are differentiated R&D assets, and ▲ manufacturing technology-based product competitiveness, such as ultra-small refining technology 'MiLi' and sustainability refining technology 'LongActa'. Novarex grew its export performance from 18.5 billion won in 2021 to 91.2 billion won in 2024, achieving export growth of about five times over three years. During the same period, the number of trading countries expanded from 7 to 15 and the number of customers expanded from 23 to 32.
Its performance in the Chinese market is also noteworthy. As partnerships with famous global distribution companies became visible, products that matched local consumers' trends were quickly supplied. As of the second quarter, exports to China accounted for more than half of all overseas sales, the report showed.
The domestic market also showed a meaningful recovery through the development of new trading lines and category expansion during the first half of the year. The number of customers as well as the number of products produced increased by about 5.5% compared to the first half of 24, establishing a stable supply chain. Analysts say that customized proposals that actively reflect the demand for renewals and new products from major customers were effective. As a result, domestic sales registered double-digit growth to 112.4 billion won from 95.9 billion won a year earlier, regaining their existing stance. Novarex plans to continue to strengthen its domestic sales competitiveness in line with changes in health functional food trends and diversification of distribution channels in the second half of the year.
In the second half of the year, strategies to cope with the expansion of global demand are expected to begin in earnest.
First, it is the structural growth of the health functional food market. According to Euromonitor, the global health functional food market is expected to grow from about $182.6 billion in 2023 to an annual average of 5-6%. Novarex is focusing on strategic markets such as Asia and North America in line with this trend.
Second, it is factory expansion and smart factory conversion. The production infrastructure located in Osong and Ochang already has a production capacity of more than 400 billion won per year, and is expanding and applying the automation-based smart factory system. It has secured a foundation to respond to the needs of global customers in terms of production speed, quality stability, and cost competitiveness. Recently, plans to expand the Osong 2nd plant and renew the 3 Ochang plants are also being established.
Third, strengthening global brand credibility. Novarex participates in HNC (Healthplex Expo), China's largest health functional food fair, and Vitafoods Asia, Asia's largest health food fair, every year. In the first half of 2025, HNC won the 'Excellent International Brand Image Award' and received an evaluation that its manufacturing quality and brand capabilities are recognized in the global market. In particular, the Chinese market is actively participating in regional fairs and expanding brand contact points.
"The performance in the global market is not just the expansion of exports, but the result of strategic growth based on Novarex's R&D capabilities, quality competitiveness, and customer responsiveness," said Kwon Seok-hyung, chairman of Novarex. "As the domestic market, which turned around in the fourth quarter of 24, is also showing positive growth in double digits in the first half of the year through continuous expansion of new trading lines and product diversification, we expect a balanced performance with domestic demand and exports growing together in the second half of the year." In the future, we will continue to move beyond just manufacturers to become global health functional food business partners that design customers' product strategies and market expansion together. It will play a pivotal role in creating an industrial ecosystem where brands and companies can grow together" he said.
This article was translated by Naver AI translator.
