1. Kolmar BNH Q2 Earnings: What Happened?

Kolmar BNH announced its Q2 2025 earnings on August 14, 2025. Revenue reached ₩164.1 billion, slightly exceeding expectations by 1%, while operating profit soared to ₩10.7 billion, surpassing estimates by a remarkable 24%. Net profit, however, came in slightly lower than expected at ₩6.7 billion (-4%).

2. Decoding the Surprise: Why These Results?

The impressive results can be attributed to steady demand for its core health functional foods and cosmetics ODM/OEM businesses, efficient operational management, and increased sales of high-margin products. Strong growth in the health functional food segment was a particular highlight. However, declining average selling prices require ongoing attention.

3. Future Growth Drivers: What’s Next?

Kolmar BNH is actively securing future growth engines by adding ‘technical service provision’ and ‘crop cultivation and sales’ to its business portfolio. These additions are expected to create synergy with existing operations and enhance cost competitiveness. Continued R&D investment is also key to maintaining market competitiveness.

  • Strengths: Growing health functional food & cosmetics market, stable business base, new business initiatives.
  • Weaknesses: Declining average selling prices, decreasing R&D investment ratio.
  • Opportunities: US Federal Reserve rate freeze, low South Korean base rate, rising KRW/USD and KRW/EUR exchange rates, stabilizing international oil prices.
  • Threats: Dependence on the Chinese market, RMB volatility.

4. Action Plan for Investors

Kolmar BNH shows positive growth potential, but declining average selling prices and reduced R&D investment warrant caution. Investors should consider the following:

  • High-value-added product portfolio strengthening: Focus on premium product line expansion.
  • Expansion and efficiency of R&D investment: Monitor innovative technology developments.
  • Export market diversification: Track strategies to reduce reliance on the Chinese market.
  • Financial structure stabilization: Review debt management and interest rate hedging strategies.