Otoki Corporation (007310)

Ottogi is a comprehensive food company that manufactures and sells various types of food products, including dried foods, sauces, oils and fats, noodles, and processed agricultural and marine products, at 25 to 26 business sites both domestically and internationally. Its main products include curry, retort foods (3-minute meals), ketchup, mayonnaise, ramen (Jin Ramen), and instant rice. In 2023, noodle products accounted for the largest share of revenue at 27.5%, followed by processed agricultural and marine products at 20.3%, sauces at 17.0%, others at 14.8%, oils and fats at 12.4%, and dried foods at 8.0%. Ottogi supplies products not only to the B2C market targeting general consumers but also to various B2B customers such as restaurants, school cafeterias, corporate cafeterias, military food services, and food manufacturing plants. Notably, the company holds a solid No. 1 market share in numerous categories including curry, retort foods, ketchup, and mayonnaise, and maintains its position as the No. 2 player in the domestic ramen market, with Jin Ramen as its flagship product. Ottogi has built strong brand power based on its experience of pioneering the market by introducing numerous products such as curry, ketchup, and mayonnaise for the first time in Korea. It boasts a robust portfolio, recording an overwhelming No. 1 market share in several categories, including curry (82.2%), retort foods (75.1%), ketchup (87.3%), and mayonnaise (84.7%). Furthermore, its products are highly popular among consumers for their excellent "value for money," and the company has secured high customer loyalty, evidenced by being ranked No. 1 for three consecutive years in the ramen category of the 2025 National Customer Satisfaction Index (NCSI). While Ottogi's revenue is not specified in the provided DART data, web search results indicate it recorded 3.4545 trillion won in 2023, increasing by 2.45% year-over-year to 3.5391 trillion won in 2024. However, operating income decreased by 12.90% from 254.9 billion won in 2023 to 222.0 billion won in 2024, and further declined by 20.14% to 177.3 billion won in 2025, showing a downward trend for three consecutive years. Net income also decreased by 14.89% from 161.7 billion won in 2023 to 137.6 billion won in 2024, and significantly fell by 47.60% to 72.1 billion won in 2025. Nevertheless, operating income for Q1 2026 recorded 59.4 billion won, an increase of 3.3% year-over-year, showing signs of profitability improvement. Examining Ottogi's financial soundness, its ROE (Return on Equity) has shown a continuous downward trend, from 14.30% in 2022 to 7.84% in 2023, 6.31% in 2024, and 3.27% in 2025, indicating some disappointment in terms of profitability. The debt-to-equity ratio decreased from 83.30% in 2022 to 64.90% in 2024, and despite a slight increase to 65.29% in 2025, it generally remains at a healthy level. The current ratio significantly improved from 121.56% in 2022 to 160.32% in 2023, then slightly decreased to 143.74% in 2024 and 143.30% in 2025, but still maintains above 100%, demonstrating sound liquidity. Ottogi is facing profitability pressure due to sluggish domestic demand and intensifying competition in the local market, and to overcome this, it has set overseas market expansion as a mid-to-long-term growth objective. The company aims to achieve global revenue of 1.1 trillion won by 2030 and is pursuing the establishment of its first North American production plant in California, USA. Furthermore, it is actively pursuing strategies to strengthen its competitiveness in global markets, such as establishing a Halal-certified production line at its Bac Ninh plant in Vietnam to expand its penetration into the Southeast Asian and Middle Eastern Halal markets.