Nongshim (004370) Q1 2025 earnings summary

Executive summary

• Consolidated sales rose 2.3% year-over-year to KRW 893bn in Q1 2025, with domestic sales up 2.1% and overseas sales up 2.9%.

• Operating profit decreased to KRW 56.1bn from KRW 61bn, and net profit fell to KRW 52.2bn from KRW 53bn year-over-year.

• The company maintained strong market leadership in Korea’s ramen and snack sectors, with a 57.1% ramen and 31.6% snack market share in Q1 2025.

• Overseas expansion continued, including the establishment of NONGSHIM EUROPE B.V. in the Netherlands to strengthen European distribution.

• A new business segment, smart farming, was added to the articles of incorporation, targeting future growth through agri-tech innovation.

Financial highlights

• Gross profit remained flat at KRW 253bn, but the gross margin declined from 29.0% to 28.3% year-over-year.

• SG&A expenses increased to KRW 197bn (22.1% of sales), with labor costs rising and advertising expenses declining.

• Cash and cash equivalents at quarter-end: KRW 190.7bn, up from KRW 140.9bn at the previous year-end.

• Dividend of KRW 5,000 per share (KRW 28.9bn total) was paid after the quarter-end.

• Total assets increased to KRW 3,676bn, and equity rose to KRW 2,697bn.

Outlook and guidance

• The company aims to drive qualitative growth in the domestic market through premiumization and new product launches, while accelerating global expansion, especially in Europe and Southeast Asia.

• Smart farming is expected to become a new growth engine, leveraging accumulated R&D in vertical farming and agri-tech.

• Forward-looking statements indicate exposure to risks and uncertainties that may impact future results.