1. Nongwoo Bio Q2 Earnings: What Drove the Surprise Beat?

Nongwoo Bio reported KRW 43.3 billion in revenue, KRW 3.2 billion in operating profit, and KRW 2.5 billion in net income for Q2 2025, significantly exceeding market expectations. This positive surprise was driven by efficient cost management and favorable exchange rate effects. Cost reduction efforts, including a 44% decrease in SG&A expenses compared to the same period last year, were particularly noteworthy.

2. Continued Revenue Decline: Securing Growth is Key

Despite the positive earnings, revenue continued its downward trend, reaching KRW 80.7 billion, a 44.2% decrease year-over-year. Both the seed and agricultural materials businesses experienced sluggish performance. The seed business, in particular, was affected by seasonal factors, climate change, and weak sales of specific varieties. The company’s ability to recover revenue will be a critical factor in its future growth.

3. Investor Action Plan: Consider Both Positives and Risks

While the Q2 results may have a positive short-term impact on the stock price, investors should closely monitor the company’s mid-to-long-term strategies and execution capabilities to address the fundamental issue of declining revenue. Pay attention to Nongwoo Bio’s future strategies, including strengthening its competitiveness in overseas markets, developing high-value-added varieties, and securing a competitive edge in the agricultural materials business. Furthermore, investors should be mindful of external uncertainties such as global economic slowdown, geopolitical risks, and climate change.