Nongshim (004370) Q2 2026 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 1,890.1 billion for H1 2026, down from KRW 3,514.3 billion in FY2025, reflecting seasonality and market trends.

• Operating income for H1 2026 was KRW 126.7 billion, a decrease from KRW 183.9 billion in H1 2025.

• Net profit attributable to owners was KRW 115.3 billion, compared to KRW 170.1 billion in H1 2025.

• Maintained strong market share in core segments: 55.4% in domestic ramen and 32.5% in snacks for H1 2026.

• Continued global expansion with new subsidiaries in Russia and Europe, and ongoing investments in R&D and smart farming.

Financial highlights

• Consolidated revenue for H1 2026: KRW 1,890.1 billion; operating income: KRW 126.7 billion; net profit: KRW 115.3 billion.

• Gross margin for H1 2026: 69.6% (KRW 1,314.9 billion gross profit on KRW 1,890.1 billion sales).

• Basic EPS for H1 2026: KRW 19,776; diluted EPS: KRW 19,140.

• Debt ratio at end of H1 2026: 36.9%, up from 35.0% at FY2025.

• Cash and cash equivalents at H1 2026: KRW 2,065.7 billion.

Outlook and guidance

• Focus on qualitative growth in domestic markets through premiumization and new product launches.

• Aggressive overseas expansion, especially in the US, China, Europe, and Russia.

• Continued investment in R&D, smart farming, and ESG initiatives.

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