1. What Happened in H1 2025?
Harim recorded revenue of KRW 709.886 billion (a 12.3% increase year-on-year) in H1 2025, driven by growth in the fresh meat segment and an increase in biological asset valuation. However, operating profit declined to KRW 26.719 billion (a 10.6% decrease year-on-year), impacting profitability. Net income turned positive at KRW 32.82 billion.
2. Why the Fluctuation in Performance?
Revenue Growth Drivers: Increased chicken prices, decreased imports, and recovering restaurant demand.
- Operating Profit Decline Drivers: Rising live chicken prices, increased financial costs due to exchange rate fluctuations, and declining sales in the meat processing segment.
Net Income Turning Positive: Improvement in financial income and expenses.
3. What’s the Outlook for Harim?
Positive Outlook:
- Strong market dominance and stable domestic chicken demand.
- Continuous efforts to improve financial structure.
Negative Outlook and Risks:
- Cost pressures and intensified competition in the meat processing segment.
- Volatility in exchange rates and oil prices.
- Potential outbreak of Avian Influenza (AI).
4. What Should Investors Do?
Short-term investments should be approached cautiously, considering the cost burden and potential slowdown in profitability. Long-term investment decisions should be based on a comprehensive evaluation of the growth potential of the chicken industry, Harim’s market dominance, and its efforts to improve profitability. Investors should pay close attention to changes in macroeconomic indicators such as exchange rates and international oil prices.