1. Daesang’s H1 2025 Performance: What Happened?
Daesang recorded revenue of KRW 1.076 trillion (-0.5% YoY), operating profit of KRW 40.8 billion (-11.0% YoY), and net income of KRW 18.2 billion (return to profitability). While net income turned positive, operating profit missed market consensus.
2. Analyzing the Drivers: Why These Results?
- Positive Factors: Global expansion driven by the K-Food boom, successful entry into the HMR market
- Negative Factors: Declining profitability in Vietnam’s MSG business, raw material price volatility in Indonesia’s starch sugar business, high debt ratio, and KRW/USD exchange rate fluctuations.
3. Outlook and Investment Strategies: What’s the Future Hold?
Daesang has growth potential with its solid foundation in food and material businesses and overseas expansion. However, strengthening financial health and managing exchange rate and raw material price volatility are key challenges.
- Action Plan for Investors:
- Be mindful of short-term stock price volatility and establish investment strategies from a mid- to long-term perspective.
- Monitor H2 2025 earnings improvements, overseas market performance, raw material prices, and exchange rate stabilization.
- Review management strategies such as financial health improvement efforts, overseas subsidiary profitability improvement strategies, and new business entry strategies.