1. What Happened? Hanwha Galleria Announces H1 2025 Earnings

Hanwha Galleria announced its H1 2025 earnings on August 13, 2025. Consolidated revenue saw a slight increase year-over-year to KRW 256.2 billion, but operating income remained negative at KRW -3.07 billion. Preliminary results also showed both operating and net income falling short of market expectations, remaining in the red.

2. Why These Results? Balancing Expansion with Profitability Challenges

Despite revenue growth, persistent operating losses stem from increased investment and operating costs in new businesses, coupled with intensified competition. While Five Guys’ Japan expansion and the new ice cream business are expected to be long-term growth drivers, they pose short-term profitability challenges. The rise in the KRW/EUR exchange rate also contributed to the decline in profitability.

3. What’s Next? The Future Hinges on Business Strategy Execution

Hanwha Galleria’s future stock performance depends on the success of its expansion strategy, profitability improvement efforts, and its ability to respond to macroeconomic changes. Key tasks include cost control for improved profitability, demonstrating tangible results from new ventures, and strengthening exchange rate risk management.

4. Investor Action Plan: Careful Analysis and Strategy Development

Rather than reacting to short-term performance fluctuations, investors should analyze the long-term performance of the company’s expansion strategy. It’s crucial to review the efficiency of existing businesses, profitability of new ventures, and exchange rate risk management strategies before making investment decisions.