Samyang Foods' Buldak instant noodle products / Courtesy of Samyang Foods

Samyang Foods is on track to become Korea's most profitable instant noodle maker in 2024, as the export performance of its hit Buldak instant noodle product lineup, has been bolstered by a stronger dollar.

According to the company's regulatory filing, Sunday, Samyang Foods' revenue for 2024 stood at 1.73 trillion won ($1.19 billion), up 45 percent from a year earlier. During the same period, operating profit soared by a whopping 133 percent to 352.27 billion won from 147.5 billion won.

The operating margin stood at 19.9 percent, which is a surprising figure considering that most food companies in Korea report an operating profit margin of around 5 percent. It was the first time for the company to post over 300 billion won in operating profit.

Samyang's domestic rivals, including Nongshim and Ottogi, are yet to announce their 2024 earnings, but they are expected to trail behind Samyang in terms of operating profit.

According to brokerages' consensus provided by market tracker FnGuide, Nongshim, which produces Korea's top-selling Shin Ramyun, is estimated to report 3.47 trillion won of sales in 2024, but its operating profit will remain at 180.6 billion won. Ottogi, which produces Jin Ramen, is anticipated to post 3.5 trillion won in sales and 240 billion won in operating profit.

Samyang Foods attributed this achievement to the soaring demand for Buldak-brand products in the United States and Europe, which increased "to the point where supply struggles to keep up."

"Particularly, Carbonara Buldak made quick entry into major U.S. retail chains such as Walmart and Costco," the company said. "Also, the canceled recall of some Buldak products in Denmark drew global attention to the brand not just in Europe but worldwide."

Kim Jung-su, vice chairman of Samyang Foods' parent company Samyang Roundsquare, speaks during a forum hosted by the Federation of Korean Industries (FKI) in Gangneung, Gangwon Province, Jan. 10. Courtesy of FKI

First reported by The Korea Times, the Danish Veterinary and Food Administration ordered a recall of three Buldak noodles in June last year for being too spicy but canceled part of the decision a month later. This generated buzz among customers across the world, pushing up its sales further.

From January to September last year, Samyang Foods' instant noodle exports reached 754.2 billion won, accounting for more than 60 percent of Korea's total instant noodle exports during the same period. In the third quarter of last year alone, 77 percent of the company's revenue came from the overseas market, indicating that the global popularity of the Buldak brand is leading the company's growth.

Against this backdrop, the strong dollar performance throughout last year also significantly boosted the company's operating profit.

"The won-dollar exchange rate continued to rise each month during the fourth quarter," Hanwha Securities analyst Han Yu-jung said. "Due to the time gap between shipments from Korean factories and sales at overseas subsidiaries, the foreign exchange gains seem to be also greater than expected."

Similar to other instant noodle makers, Samyang Foods imports most of its ingredients and makes them in the company's factory in Miryang, South Gyeongsang Province. Payments for ingredients are made on a six-month basis, while the payment for its exports is simultaneously affected by the exchange rate.