Hyungkuk F&B posts lower operating profit despite sales growth

Hyungkuk F&B said its second-quarter operating profit fell 49.2 percent to 1.43 billion won ($1.01 million) from 2.81 billion won a year earlier, even as revenue rose 2.9 percent to 26.1 billion won ($18.4 million).

A cafe-focused beverage-base maker, Hyungkuk F&B introduced pistachio and pomelo beverage bases and hojicha powder in February. The company said pistachio- and hojicha-based menu offerings had become key trends in the cafe and food-service industry during the first half. Beverage bases were its largest product-sales category in the first quarter, generating 7.57 billion won ($5.34 million), or 36.4 percent of product sales, followed by prunes at 7.19 billion won ($5.07 million), or 34.5 percent.

"Cafe menu trends change rapidly, but stores also require consistent quality and ease of preparation," a Hyungkuk F&B marketing team representative said. "We will continue to support stronger menu competitiveness in the cafe and food-service industry through product development that reflects market trends and on-site needs."

In April, the company showcased pistachio, pomelo and ube beverage bases, along with pistachio powder and gelato, at the Seoul Coffee Expo. It conducted on-site tastings and consultations for cafe operators and franchise merchandising managers.