Nongshim (004370) Q2 2025 earnings summary

Executive summary

• Consolidated sales rose 1.6% year-over-year to KRW 1,761bn in 1H 2025, with domestic sales up 0.4% and overseas sales up 4.7%.

• Noodle sales grew due to price increases and new products, while beverage sales declined sharply.

• Overseas growth was led by Japan and Vietnam, with partial sales from a new European subsidiary.

Financial highlights

• Gross profit decreased to KRW 497bn from KRW 500bn year-over-year, reflecting higher costs.

• Operating profit fell to KRW 96bn from KRW 105bn, and net profit dropped to KRW 89bn from KRW 96bn.

• SG&A expenses increased slightly to KRW 401bn, with labor costs rising to KRW 101bn.

• Finance income rose significantly to KRW 312bn from KRW 22bn.

Outlook and guidance

• Management notes a market slump offsetting Q2 price hikes, with demand slowing and cost pressures persisting.

• Forward-looking statements are subject to risks and uncertainties that may impact actual results.