1. What Happened at Kolma BNH?
Kolma BNH’s half-year revenue for 2025 was 42 billion won, significantly below the market expectation of 160.2 billion won, and operating profit was also 3.3 billion won, considerably lower than the expected 8.5 billion won. The sharp deterioration in second-quarter earnings compared to the first quarter is even more concerning.
2. Reasons for the Earnings Decline
The decline can be attributed to two main factors. First, increased competition in the health functional food and cosmetics market, coupled with weakened consumer sentiment, led to a decline in average selling prices. Second, with a business structure highly dependent on major customers, Kolma BNH likely felt the impact of changes in customer strategies and delays or sluggishness in new product launches. The year-on-year decline in sales and operating profit of 7.8% and 17.6%, respectively, supports this analysis.
3. Future Outlook
A sharp drop in the stock price and further declines are highly likely in the short term, and a re-evaluation of valuation is inevitable. In the medium to long term, although there are positive factors such as R&D capabilities and competitiveness in overseas markets, it is urgent to find specific breakthroughs for earnings recovery. Developing high-value-added products, securing negotiating power for price increases, successfully launching new businesses, and reducing dependence on major customers are key tasks.
4. What Should Investors Do?
A conservative investment strategy is recommended at this point. Investors should carefully monitor the third-quarter earnings announcement, management’s crisis management capabilities, the recovery of average selling prices, and the performance of new businesses, and remain cautious with investments until clear evidence of an earnings turnaround is confirmed.
Q: What were Kolma BNH’s 2025 half-year results?
A: Revenue was 42 billion won and operating profit was 3.3 billion won, representing an earnings shock that fell far short of market expectations.
Q: What are the main reasons for the poor performance?
A: The main reasons are analyzed to be increased competition in the health functional food and cosmetics market, decline in average selling prices due to weakened consumer sentiment, and dependence on major customers.
Q: What is the outlook for Kolma BNH’s stock price?
A: A sharp drop in stock price is highly likely in the short term, and the mid- to long-term outlook is expected to depend on earnings recovery. A conservative approach is necessary.