[Click eStock] "Binggrae, Continued 3Q Profit Margin Improvement... Record-Breaking Performance Expected This Year"

NH Investment & Securities forecasted on the 1st that Binggrae will continue to see solid ice cream and processed milk exports and improved profit margins through cost reduction in the third quarter, following a performance surprise in the second quarter of this year.

Binggrae's sales this year are expected to reach a record high of 1,395.1 billion KRW, a 10.0% increase compared to the previous year, and operating profit is projected to surge 148.5% to 97.9 billion KRW.

In the third quarter as well, profit margin improvements are underway in three overseas subsidiaries and domestically through cost reduction, and export data is also evaluated as favorable.

Jun-gi Baek, a researcher at NH Investment & Securities, explained, "North American Merona exports are expected to continue expanding the product lineup centered on Costco," adding, "Although the export amount in the second quarter of this year experienced a base effect due to last year's marketing impact, profitability greatly improved with net profit increasing by more than 6 billion KRW compared to the previous year."

He continued, "In the North American market, various flavor lineups such as pistachio and taro have been composed at the request of buyers, and sales are expected to grow by more than 20% year-on-year to 70 billion KRW this year," adding, "If additional channels beyond the main channel, Costco, are added, explosive sales growth is possible."

Researcher Baek also stated, "In China, as a result of maintaining distribution channels even during the COVID-19 period, the full reopening effect is being enjoyed this year," noting, "Sales in the second quarter alone grew 89.9% year-on-year, with entry into major convenience store channels and large supermarkets, and strong performance is expected in the third quarter as well."

This year, Binggrae's operating profit margin is expected to rise to the 7% range, up 4 percentage points from the previous year, showing performance improvement. Additionally, with a trend toward enhancing profitability, the competitive situation in the ice cream market is understood to be easing compared to before.

This content was produced with the assistance of AI translation services.