Namyang Dairy Products said on Wednesday it returned to an annual operating profit last year on a consolidated basis, posting 914.1 billion won in revenue and 5.2 billion won in operating profit. Operating profit swung from a 9.8 billion won loss a year earlier. Net profit improved to 7.1 billion won from 250 million won, while revenue grew 4 percent. The company cited a profitability-focused overhaul and announced a 31 billion won shareholder returns plan.

Namyang Dairy returned to an operating profit last year after five years of losses, which is seen as a result of portfolio diversification and high-intensity efficiency measures under its largest shareholder, H&Q. The company expanded categories beyond white milk into protein, processed milk, coffee and tea, and its Takefit brand gained traction in convenience stores. Industry concerns persist that the turnaround could reflect short-term cost cuts, with sales still below 1 trillion won.