Business · Companies · 3 hrs ago
Nongshim’s Third-Quarter Profit Forecast to Miss Market Expectations
Yuanta Securities expects Nongshim’s third-quarter results to miss market expectations.
The South Korean food company is forecast to report sales of 913.4 billion won and operating profit of 55.1 billion won, up 4.8% and 1.4% from a year earlier.
The brokerage says operating profit may fall 11.4% short of forecasts because fewer working days, resistance to an August price increase, and higher costs are weighing on performance.
It expects ramen and other product sales to grow, while snacks and drinks may decline.
Higher ingredient, transport and energy costs are squeezing profits, even as sales increase.
From the fourth quarter, the price increase is expected to contribute more, and a new plant is set to support exports to Europe.
The plant is expected to start at 20% to 30% capacity, with higher output next year; how much European sales and US price and volume gains add to profit remains a key question.
Yuanta Securities expects Nongshim’s third-quarter results to fall short of market expectations.
It forecasts consolidated revenue of 913.4 billion won and operating profit of 55.1 billion won.
The projected operating profit is 11.4% below the market consensus.
Yuanta says fewer working days, resistance to sales after an August price increase, and higher costs will weigh on results.
It expects price-increase benefits and expanded European supply to support growth from the fourth quarter.
- Who
- Nongshim and analyst Sohn Hyun-jung of Yuanta Securities.
- What
- Yuanta forecasts Nongshim’s third-quarter results will miss market expectations, while maintaining its Buy rating and 570,000-won target price.
- When
- The forecast was reported on October 20, 2026; Yuanta said results for the third quarter would fall short.
- Where
- South Korea; the forecast concerns Nongshim’s consolidated results.
- Why
- Yuanta cited fewer working days, sales resistance after an August price increase, weaker snack and beverage sales, and higher material, logistics and energy costs.
This story does not have two clearly opposing sides.
Nongshim raised prices, which Yuanta said could prompt resistance to sales.
Hankyung reported Yuanta Securities’ forecast that Nongshim’s third-quarter results would miss market expectations.
Yuanta Securities was cited as expecting Nongshim’s third-quarter results to fall short of market expectations.
Yuanta expects the effect of domestic price increases to be reflected more fully.
The Noksan plant is scheduled to begin operations, supporting expanded supply to Europe.
Yuanta expects exports to increase as utilization at the new plant rises.
- Forecast revenue
- 913.4 billion won, up 4.8% year on year
- Forecast operating profit
- 55.1 billion won, up 1.4% year on year
- Operating profit versus consensus
- 11.4% below market expectations
- Target price
- 570,000 won; Yuanta maintained its Buy rating
- Noksan plant
- Initial utilization expected at 20–30%
- Growth markets
- Europe is expected to join the United States and China as a growth driver
1 source
What people are saying
Domestic results will be weaker than expected because of fewer working days and resistance to sales immediately after the August price increase.
We expect the new plant to start at an initial utilization rate of 20–30%, with export volumes expected to increase next year as utilization rises.
The key to a future re-rating of the stock is whether improvements in price and volume in the United States continue and whether increased European sales translate into actual operating profit growth.