Nongshim (004370) Q1 2026 earnings summary

Executive summary

• Consolidated sales rose 4.6% year-over-year to KRW 934bn in 1Q26, with domestic sales up 12.8% and overseas sales up 23.1%.

• Operating profit increased to KRW 67.4bn, up 20.3% year-over-year, and net profit attributable to owners was KRW 60.6bn, up 16.2% year-over-year.

• Growth was driven by new product launches domestically and strong performance in key overseas subsidiaries, especially in China, the US, and Japan.

Financial highlights

• Gross profit increased to KRW 283.4bn, with margin improving from 28.3% to 30.3% year-over-year.

• Operating profit rose 19.6% to KRW 67bn, and net profit grew 17.3% to KRW 61bn.

• SG&A expenses increased to KRW 216bn, mainly due to higher labor, transportation, and advertising costs.

• Finance income rose to KRW 18.1bn, while finance costs were KRW 6.9bn.

• Basic EPS was KRW 10,394, up from KRW 9,021 in the prior year.

Outlook and guidance

• Focus remains on qualitative growth in domestic markets and aggressive overseas expansion, especially in the U.S., China, and Europe.

• Continued investment in R&D and new product launches to drive future growth.

• Dividend policy targets a payout ratio of 25% of separate net income, with a minimum of KRW 5,000 per share.

• Forward-looking statements highlight risks and uncertainties that could impact future results.