Nongshim (004370) Q3 2024 earnings summary

Executive summary

• Consolidated sales for Q3 2024 declined 0.6% year-over-year to KRW 850bn, with domestic sales down 0.4% and overseas sales down 1.2%.

• Gross profit margin fell due to increased costs and expenses, with gross profit at KRW 237bn, down from KRW 262bn in Q3 2023.

• Operating profit dropped to KRW 38bn from KRW 56bn year-over-year, and net profit decreased to KRW 37bn from KRW 50bn.

Financial highlights

• SG&A expenses reduced to KRW 199bn (23.4% of sales) from KRW 207bn (24.1%), with notable cuts in advertising and service contract expenses.

• Foreign exchange profit improved slightly to -KRW 0.4bn from -KRW 1.1bn.

• Total assets increased to KRW 3,489bn, and equity rose to KRW 2,582bn.

Outlook and guidance

• Forward-looking statements note risks and uncertainties that may cause actual results to differ from projections.