[Click eStock] "Binggrae, Strong Performance in First Half Expected to Continue in Q3"

On the 25th, IBK Investment & Securities forecasted that Binggrae's positive momentum in the first half of the year will continue into the third quarter.

Kim Taehyun, a researcher at IBK Investment & Securities, stated in a report on the same day, "The consolidated sales and operating profit for the third quarter are expected to be 417.5 billion KRW and 43.4 billion KRW respectively, representing increases of 6.9% and 68.5% compared to the same period last year, surpassing consensus estimates." He added, "With stable input cost trends and continued reduction in advertising expenses, the significant improvement in operating profit seen in the first half is expected to persist in this quarter."

Researcher Kim also noted, "Considering the improved profitability of refrigerated products and the prolonged heatwave lasting until mid-September affecting frozen products, expectations for sales growth in Binggrae's ice cream category in the third quarter remain valid." He projected, "Along with the effects of price increases and expanding demand for weight management and nutritional balance, the Deodanbaek brand's sales, which exceeded 10 billion KRW last year, are expected to comfortably surpass 20 billion KRW this year."

Furthermore, he explained, "From early October, an 8.8% price increase (88 KRW per liter) in raw milk for beverage use is expected to be reflected." He added, "However, since the industry's leading company has decided on a price increase for deliveries, it appears that the company can also implement price hikes without significant difficulties."

He continued, "While the proportion of white milk in Binggrae's (separate) sales has been decreasing annually, it shrank to around 4% last year, which suggests that the company will bear relatively less burden from rising raw milk prices compared to other companies."

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