1. What Happened? S&D Announces Q2 Earnings
S&D announced its Q2 2025 earnings on August 14th. Revenue came in at 38.1 billion KRW, operating profit at 6 billion KRW, and net profit at 4.9 billion KRW, all below market consensus.
2. Why Did This Happen? Fundamental Analysis
While revenue increased year-over-year, Q2 growth slowed, missing market expectations. Increasing inventory and investments in tangible assets could pressure future cash flow.
- Positives: Growth in general functional food ingredients, acquisition of individual recognition for health functional foods, new business initiatives.
- Negatives: Earnings missed expectations, inventory and investment burden, exchange rate volatility.
3. What’s Next? Future Outlook
While short-term stock price adjustments are possible, the long-term growth potential remains. Investors should monitor future earnings improvements, inventory management efficiency, and the results of new investments. The growth of the health functional food market is a positive factor for S&D.
4. What Should Investors Do? Investment Strategy
The current investment recommendation is ‘Neutral.’ It’s advisable to monitor future earnings improvement, inventory management, and new investment impact before making investment decisions.