1. What Happened? Cody’s Q2 Earnings Breakdown

Cody reported Q2 2025 revenue of ₩22 billion and operating profit of ₩2 billion, missing market expectations by 22% and 20% respectively. This marks a slowdown from Q1’s growth, raising concerns about the company’s trajectory. Despite positive performance in the cosmetics segment and improved profitability in the packaging business in Q1, Cody struggled to maintain this momentum in Q2.

2. Why the Disappointment? Analyzing the Earnings Miss

While the precise reasons will be revealed in future disclosures, macroeconomic uncertainties and management instability likely played a role. Factors such as rising international oil prices, shipping costs, exchange rate volatility, and the recent change in major shareholders and management could have negatively impacted performance. Furthermore, the relatively low R&D investment compared to competitors could hinder long-term growth.

3. What’s Next? Outlook and Investment Strategy

In the short term, investors should be wary of potential stock price declines. The disappointing earnings announcement could lead to negative investor sentiment. However, the long-term outlook hinges on Cody’s ability to strengthen its cosmetics business, achieve tangible results from new business ventures, and increase R&D investment. Investors should closely monitor upcoming earnings releases and business developments, focusing on the sustained growth of the cosmetics segment and the success of new business initiatives.

4. Investor Action Plan

  • Short-term: Approach with caution; consider bargain hunting if support levels are identified.
  • Long-term: Monitor cosmetics segment growth, new business performance, and R&D investment increases.