1. Elkos H1 2025 Performance Analysis: What Happened?

Elkos recorded KRW 16.923 billion in consolidated revenue and KRW 8.042 billion in net loss for the first half of 2025. Revenue decreased significantly year-on-year, and profitability turned negative. This is mainly due to the exclusion of one-off sales from the previous year and an increase in M&A costs (KRW 2.768 billion) and interest expenses (KRW 5.709 billion).

2. Elkos’ Growth Drivers and Risk Factors: Why These Results?

2.1 Growth Drivers

  • Business Diversification: Expanding business areas beyond baby food to alternative foods and elderly-friendly foods.
  • Overseas Market Expansion: High growth in overseas markets such as Vietnam and Japan.
  • Securing Core Technologies: Silk protein-based technology, plant-based alternative food technology, etc.

2.2 Risk Factors

  • Increased M&A Costs: Leading to short-term deterioration in profitability.
  • Intensifying Competition: Potential for increased competition in the alternative and elderly-friendly food markets.
  • Raw Material Price Volatility: Possibility of increased raw material import costs.

3. Elkos, Future Outlook and Investment Strategies: What to Do?

Elkos has secured growth potential through business diversification and overseas market expansion, but the short-term deterioration in profitability is causing concern for investors. The key variable will be whether the company can recover sales in its main business and secure profitability in new businesses after M&A costs are depleted.

4. Key Checkpoints for Investors: What Should Investors Do?

  • Monitor Profitability Improvement: Check for improvement in operating profit and net profit margins after M&A costs disappear.
  • Analyze New Business Performance: Analyze market growth and competitiveness of alternative foods and elderly-friendly foods.
  • Manage Exchange Rate and Interest Rate Volatility: Analyze the financial impact of fluctuations in exchange rates and interest rates.