1. What Happened with Binggrae’s Q2 Earnings?

Binggrae reported sales of KRW 409.6 billion, operating profit of KRW 26.8 billion, and net income of KRW 24.2 billion for Q2 2025. Sales slightly missed market expectations (-2%), while operating profit and net income experienced significant declines of 29% and 15%, respectively. Compared to the same period last year, sales increased by a mere 1.4%, while operating profit and net income decreased by 39% and 34.4%, respectively.

2. Why the Decline in Performance?

Rising raw material costs, such as the price of raw milk, are identified as the primary cause. The weakening Korean Won also put pressure on Binggrae, given its reliance on imported raw materials.

3. What’s the Outlook for Binggrae Stock?

In the short term, there is a possibility of stock price adjustments due to the earnings announcement. However, Binggrae maintains strong brand power and market dominance, stable sales growth, shareholder value enhancement efforts, and a stable financial structure. Furthermore, the company is expanding into overseas markets with high growth potential. Therefore, from a mid-to-long-term perspective, it’s important to focus on these positive factors.

4. Action Plan for Investors

  • Short-term strategy: Closely monitor whether profitability improves from Q3 onwards (cost management, SG&A efficiency, price increases, etc.).
  • Mid-to-long-term strategy: Focus on Binggrae’s brand power and growth story in overseas markets.
  • Key monitoring points: Future raw material price trends, new product launches and marketing strategies, growth rate in overseas markets (Vietnam, China), and fluctuations in interest rates and exchange rates.