Nongshim (004370) Q2 2024 earnings summary

Executive summary

• Consolidated sales rose 2.1% year-over-year to KRW 1,733bn in 1H 2024, with domestic sales up 4.9% and overseas sales down 4.6%.

• Gross profit margin declined to 28.9% from 31.3% due to input cost pressures.

• Operating profit decreased to KRW 105bn from KRW 118bn year-over-year; net profit fell to KRW 96bn from KRW 99bn.

Financial highlights

• SG&A expenses reduced to KRW 395bn (22.8% of sales) from KRW 415bn (24.4%).

• Advertising expenses dropped to KRW 61bn (3.5% of sales) from KRW 84bn (4.9%).

• Foreign exchange profit improved to KRW 0.9bn from a loss of KRW 0.3bn.

• Assets increased to KRW 3,388bn from KRW 3,165bn; equity rose to KRW 2,564bn from KRW 2,398bn.

Outlook and guidance

• Forward-looking statements highlight risks and uncertainties that may impact future results.