PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩3,300 per share · Prices as of the 2026-10-02 close
Binggrae's operating profit rebounded sharply in the second quarter of 2026 on the back of the Haitai Ice Cream merger and cost efficiencies, though structural challenges from weak domestic consumption and input cost pressure remain.
Q2 2026 revenue reached KRW 442.1 billion with operating profit of KRW 69.7 billion, sharply up from KRW 26.8 billion a year earlier
Q4 2025 posted an operating loss of KRW 10.9 billion due to one-off costs including long-term employee benefits, but the company returned to profit from Q1 2026
The April 1, 2026 absorption merger of Haitai Ice Cream is driving organizational, logistics, and procurement integration, reducing selling and administrative expenses
The domestic ice cream market has settled into a two-way race with Lotte Wellfood, with Binggrae and Haitai's combined share now exceeding Lotte Wellfood's
Overseas sales rose to about 16% of revenue in the first half of 2026, though the majority of revenue still depends on the domestic market
Binggrae is a comprehensive food company built around two pillars: refrigerated products (milk, dairy beverages, fermented milk) and frozen products (ice cream and frozen desserts), and it converted to a single corporate entity by absorbing its subsidiary Haitai Ice Cream on April 1, 2026.
In terms of revenue mix, the frozen and other product group, including ice cream, accounts for 56.4%, while the refrigerated product group, including milk and dairy beverages, accounts for 43.6%.
Flagship brands include Banana Flavored Milk, Yoplait, and Acafela in the refrigerated segment, and Melona, Bungeo Ssamanco, Tugether, and Deowisanyang in the frozen segment; in 2024 the company also launched a protein beverage brand to enter the ready-to-drink protein market.
The domestic ice cream market has reorganized into a two-way contest between Lotte Wellfood and Binggrae, with retail sales data showing Lotte Wellfood holding a 39.8% share to rank first last year, Binggrae second at 28.1%, and Haitai Ice Cream third at 14.6%.
However, when Binggrae and Haitai Ice Cream's results are combined, the group overtakes Lotte Wellfood in both share and revenue.
Overseas operations are centered on local subsidiaries in the United States, China, and Vietnam, with Melona placed in mainstream US retail channels such as Costco and holding roughly 70% of the Korean ice cream category in the US market.
As of the first half of 2026, the overseas revenue share expanded to around 16%, though the majority of revenue still depends on the domestic market. Competitively, the company faces rivals such as Seoul Milk and Maeil Dairies in dairy, and Lotte Wellfood directly in the frozen dessert category.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩409.6B | ₩26.8B | 6.6% |
| 2025Q3 | ₩479.2B | ₩58.9B | 12.3% |
| 2025Q4 | ₩292.2B | -₩10.9B | −3.7% |
| 2026Q1 | ₩312.4B | ₩13.8B | 4.4% |
| 2026Q2 | ₩442.1B | ₩69.7B | 15.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.3T | ₩39.4B | ₩25.7B | 3.1% | 4.5% | 33.6% |
| 2023 | ₩1.4T | ₩112.2B | ₩86.2B | 8.1% | 13.4% | 38.8% |
| 2024 | ₩1.5T | ₩131.3B | ₩103.2B | 9.0% | 14.3% | 39.0% |
| 2025 | ₩1.5T | ₩88.4B | ₩55.6B | 5.9% | 7.5% | 43.7% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
On an annual basis, Binggrae's operating profit expanded markedly from KRW 39.4 billion on revenue of KRW 1.268 trillion in 2022 to KRW 131.3 billion on revenue of KRW 1.463 trillion in 2024.
In 2025, however, despite a slight increase in revenue to KRW 1.490 trillion, operating profit fell sharply to KRW 88.4 billion and owners' net income dropped to KRW 55.6 billion, a decline attributable to rising raw material costs, labor cost pressure, and expenses tied to preparations for the Haitai Ice Cream merger.
Looking at the quarterly pattern, after posting revenue of KRW 409.6 billion and operating profit of KRW 26.8 billion in Q2 2025, operating profit rose to KRW 58.9 billion in Q3 on seasonal strength, but the company swung to an operating loss of KRW 10.9 billion in Q4 due to one-off costs including long-term employee benefits and sales office integration expenses.
In Q1 2026, the company returned to profit with revenue of KRW 312.4 billion and operating profit of KRW 13.8 billion, and in Q2 2026 revenue reached KRW 442.1 billion with operating profit of KRW 69.7 billion and owners' net income of KRW 56.4 billion, a sharp increase from the prior-year quarter's operating profit of KRW 26.8 billion.
The improvement is attributed to strong sales of frozen products amid a heat wave and export performance, alongside company-wide profitability initiatives following the Haitai merger, including reduced selling and administrative expenses and the discontinuation of low-margin products.
Indeed, consolidated SG&A expenses fell 20.0% year-on-year to KRW 74.5 billion in Q2 even as revenue rose, with the SG&A ratio dropping 5.9 percentage points to 16.9%.
Summing the most recent four quarters from Q3 2025 through Q2 2026, owners' net income reached KRW 87.2 billion, confirming a recovery in profit scale following the Q4 2025 loss.
On the cash flow side, operating cash flow briefly turned negative at KRW -11.2 billion in 2022 before improving to KRW 156.7 billion in 2023, KRW 147.1 billion in 2024, and KRW 114.3 billion in 2025.
The domestic dairy and frozen dessert market faces structural constraints from a declining child population amid low birth rates and broader sluggish domestic consumption, which is shrinking the core consumer base for ice cream and pressuring profitability.
That said, the domestic frozen dessert market has settled into a two-way structure between Lotte Wellfood and Binggrae, easing what had previously been excessive competition and making the profit structure more resilient.
On the raw material side, raw milk prices rose steadily from KRW 1,163 per kilogram in 2023 to KRW 1,208 in 2024 and KRW 1,214 in the third quarter of 2025, compounded by rising input costs for cocoa, coffee, and mixed skim milk powder as well as labor cost pressure from expanded statutory wage calculations.
In response to this cost pressure, the company has pursued a combination of price increases on key products, discontinuation of low-margin items, and cost savings through integrated procurement.
The global K-frozen dessert market continues to grow, with market research firm Statista projecting continued moderate growth in related sales going forward.
Rival Lotte Wellfood is also expanding overseas, suggesting the broader domestic frozen dessert industry is looking to offset stagnant domestic demand through export growth.
In its value-up plan announced last year, the company outlined operational efficiencies from the Haitai Ice Cream merger, overseas sales expansion centered on major markets such as the United States, entry into Oceania and Europe leveraging Australian production capacity, and a dividend policy of at least 25% of standalone net income.
In the European market, given strict dairy regulations, the company is pursuing localized products such as plant-based Melona and plant-based Bungeo Ssamanco, while also seeking to expand distribution channels through participation in major global food trade fairs.
On shareholder returns, the company retired treasury shares in April 2025 and again in March 2026, continuing efforts to enhance per-share value.
In the securities industry, second-half seasonal strength and expanding overseas exports are cited as grounds for continued earnings improvement; Hana Securities analyst Sim Eun-ju assessed that eased competition in the frozen dessert market along with production and logistics efficiencies had driven the profit improvement, and expected this trend to continue into the third quarter.
Daol Investment & Securities analyst Lee Da-yeon assessed that efficiency effects across production, procurement, logistics, and promotion have raised the likelihood of operating profit remaining positive in every quarter of 2026, estimating full-year revenue of about KRW 1.565 trillion and operating profit of about KRW 166.0 billion.
Still, with the overseas revenue share still around 16%, reducing domestic dependence and diversifying growth drivers remains a medium-to-long-term task.
Binggrae's profit trajectory peaked in 2024, contracted once in 2025, and has been recovering again through 2026, so when assessing valuation it is worth considering the pace of profit recovery on a trailing four-quarter basis rather than a single period's profitability alone.
The share price relative to net assets has moved between premium and discount ranges over time, and how quickly the recent recovery in owners' net income feeds through into that ratio is a point worth watching.
On the dividend front, the company has stated a policy of maintaining dividends of at least 25% of standalone net income, so whether the profit recovery translates into expanded dividend capacity going forward bears watching.
Some in the securities industry maintain a constructive view based on expectations of earnings improvement and progress on the value-up plan, but assessments remain divided given persistent structural variables such as weak domestic consumption and cost pressure.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Following the completion of the Haitai Ice Cream absorption merger on April 1, 2026, the integration of sales offices, logistics, and procurement functions is showing up in reduced selling and administrative expenses.
Consolidated SG&A fell 20.0% year-on-year to KRW 74.5 billion in Q2 even as revenue grew, with the SG&A ratio dropping 5.9 percentage points. Analysts have suggested this structural cost reduction could continue into the second half.
Building on Melona's success in the US market, export destinations are diversifying into China, Vietnam, and Australia, while entry into new markets such as Europe and Oceania is also being pursued. Melona is estimated to hold roughly 70% of the Korean ice cream category within the US market. The overseas revenue share expanded to about 16% in the first half of 2026.
The combined results of Binggrae and Haitai Ice Cream have reportedly overtaken longtime market leader Lotte Wellfood in both share and revenue. Some observers note that the domestic frozen dessert market's consolidation into a two-way structure has eased excessive competition and strengthened the profit structure.
On shareholder returns, the company continues to enhance shareholder value through treasury share retirements and its dividend policy.
The structural challenge of a shrinking child population, the core consumer base for ice cream, persists amid low birth rates, alongside continued sluggish overall domestic consumption. With the majority of revenue still dependent on the domestic market, escaping this structural constraint is not straightforward.
The company itself has noted that revenue growth has relied on overseas markets and seasonal demand amid weak domestic consumption.
Raw milk prices rose continuously from 2023 through 2025, compounded by rising input costs for cocoa, coffee, and mixed skim milk powder as well as labor cost pressure from expanded statutory wage calculations.
This cost pressure was a key factor behind the sharp decline in 2025 operating profit compared to the prior year. Some observers note that if raw material prices rise further, defending profitability through cost-cutting alone may become more difficult.
Given a business structure where the frozen dessert peak season is concentrated in the second and third quarters, quarterly earnings show significant variance, and the company posted an operating loss in Q4 2025 due to one-off cost recognition.
How far off-season margins decline is cited as a key variable determining the annual earnings trajectory. This seasonality makes it difficult to expect a stable profit flow in every quarter.
Prices of key raw materials such as raw milk, cocoa, coffee, and skim milk powder have continued rising amid international instability, while currency volatility adds to cost pressure. The company has offset this through SG&A reductions, but there may be limits to defending margins if cost increases persist.
The declining child population from low birth rates translates directly into a structural risk of a shrinking core ice cream consumer base. If overall domestic consumption remains sluggish, domestic revenue growth could face constraints. This is a long-term structural variable that short-term cost management cannot fully resolve.
In January 2026, Binggrae conducted a voluntary retirement program covering all employees including those of Haitai Ice Cream, reportedly offering severance of 15 months' salary for team leaders and 12 months' for team members.
As the merger and voluntary retirement program occurred around the same time, controversy arose over the distribution of gains. With third-generation family members increasingly involved in management, uncertainty around succession is also a factor worth monitoring.
Preliminary Q3 earnings are expected to be disclosed around this time based on past release patterns. It will be worth checking whether the seasonal boost and SG&A savings continue, and whether the earnings improvement forecasts from analysts such as Hana Securities and Daol Investment & Securities are borne out.
At the time of the year-end dividend announcement, it will be worth confirming whether the stated policy of dividends at least 25% of standalone net income is actually implemented, and whether the profit recovery translates into a larger dividend.
Progress in the new European and Oceania market entries and whether the China subsidiary's performance recovers should be tracked through quarterly disclosures and regional revenue data.
Whether rising input costs for cocoa, coffee, and skim milk powder, along with labor cost pressure from expanded statutory wage calculations, outweigh the SG&A savings will be a key variable for second-half margins.
Following the absorption merger of Haitai Ice Cream, Binggrae has integrated its organizational, logistics, and procurement functions, tracing a profit recovery path through 2026.
While 2025 saw profits contract sharply due to cost and labor expense pressure along with one-off charges, the company returned to profit in Q1 2026 and showed a marked recovery with operating profit surging year-on-year in Q2.
In the domestic frozen dessert market, the company has secured a combined share advantage over Lotte Wellfood within a two-way competitive structure, while overseas it maintains dominance in the US market centered on Melona and is gradually expanding its export share.
Still, structural variables persist, including a shrinking core consumer base from low birth rates, sluggish domestic consumption, and rising raw material and labor costs.
Given the significant seasonal volatility in earnings and the extent to which off-season margins shape annual results, future quarterly performance, the trajectory of overseas revenue share expansion, and the implementation of the dividend policy will remain key points to monitor going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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