Hyundai Green Food (453340) Q2 2024 earnings summary

Executive summary

• Operates in food service, distribution, and food material supply, focusing on institutional catering, wholesale/retail, and health food initiatives.

• Achieved consolidated sales of 1,101.9 billion KRW for H1 2024, with food service accounting for 47.2% of revenue.

• Consolidated 2Q24 revenue rose 4.2% year-over-year to 542.4 billion KRW, with operating profit up 16.4% to 32.5 billion KRW.

• Overseas food service sales reached 64.6 billion KRW in H1 2024, with all international operations profitable.

• Maintains a strong credit rating (A1) for commercial paper and electronic short-term bonds.

Financial highlights

• 2024 H1 consolidated revenue: 1,101.9 billion KRW, down from 1,827.0 billion KRW in H1 2023.

• Operating profit: 63.7 billion KRW (2023 H1: 38.4 billion KRW).

• Net profit attributable to controlling interest: 46.8 billion KRW (2023 H1: 29.6 billion KRW).

• 2Q24 consolidated gross profit grew 10.8% YoY to 101.7 billion KRW, with gross margin improving to 18.8%.

• Cash and cash equivalents at period end: 46.6 billion KRW.

Outlook and guidance

• Focus on expanding health functional food and care food segments, leveraging existing distribution channels.

• Overseas operations, especially in the Middle East and Americas, are expected to continue contributing positively.

• Maintains a mid-term dividend policy targeting at least 325 KRW per share annually through 2026.