1. Monalisa’s Disappointing H1 2025 Performance
Monalisa reported weak earnings in the first half of 2025, with revenue of KRW 61.4 billion and operating profit of KRW 500 million. Sales decreased by 4.6% year-on-year due to the economic downturn and weakened consumer sentiment, while operating profit plummeted by a staggering 97.9%.
2. Analyzing the Causes of the Decline: Positive Signals Amidst the Headwinds?
This poor performance is a result of a combination of factors, including a deteriorating domestic and international business environment, rising raw material prices, and low production efficiency. In particular, despite the drop in pulp prices, the rise in wastepaper prices has added to cost burdens. However, the fact that the preliminary earnings exceeded the expected ‘0’, and the solid financial structure without debt, act as positive factors. Also, the completion of facility investment in the Nonsan plant is expected to contribute to increased production efficiency in the future.
3. Monalisa’s Future: Overcoming Strategies and Investment Points
Monalisa is striving to enhance its competitiveness through strengthening ESG management, developing new products, and expanding e-commerce channels. Investors should pay close attention to future earnings recovery drivers, cost management capabilities, changes in the competitive landscape, and macroeconomic indicators. In particular, the effects of facility investment in the Nonsan plant, the launch of new products, and the success of online sales strategies are important investment points.
4. Action Plan for Investors
- Focus on long-term growth potential rather than short-term performance.
- Check the company’s response strategies to raw material price and exchange rate fluctuations.
- Analyze whether Monalisa has secured a differentiated competitive edge compared to its competitors.
- Monitor macroeconomic indicators and trends in improving consumer sentiment.