1. Harim’s Q2 2025 Performance: What Happened?

Harim reported revenue of KRW 376.7 billion, operating profit of KRW 20.3 billion, and net income of KRW 28.2 billion in Q2 2025, marking a return to profitability. While revenue slightly decreased year-over-year, both operating and net income showed significant improvement.

2. Reasons for the Turnaround: Why the Improvement?

The return to profitability is attributed to improved cost management efficiency through vertical integration and increased sales driven by recovering chicken consumption. Investments in facilities, such as smart factories, also contributed to enhanced productivity.

3. Positive Factors and Risks: What to Consider

  • Positive Factors: Harim’s strengths include a robust vertical integration system, maintained market leadership, and commitment to ESG management.
  • Risk Factors: Investors should be mindful of risks such as high debt-to-equity ratio, exchange rate volatility, raw material price fluctuations, and the potential for avian influenza outbreaks.

4. Action Plan for Investors

If you’re considering investing in Harim, carefully assess the following:

  • Analyze the detailed business segment performance and changes in cost structure upon the release of the final earnings report.
  • Understand Harim’s hedging strategies against exchange rate and raw material price fluctuations.
  • Monitor the progress and performance of new business initiatives.
  • Analyze the impact of changes in macroeconomic indicators.