PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩280 per share · Prices as of the 2026-10-02 close
Crown Confectionery has extended revenue growth for four straight years, but its operating margin has clearly declined, with earnings showing a modest recovery in the first half of 2026 after bottoming in the fourth quarter of 2025.
Consolidated revenue rose for four consecutive years from KRW 413.6 billion in 2022 to KRW 444.8 billion in 2025, while operating profit fluctuated sharply over the same period.
The operating margin fell from 6.5% in 2023 to 3.4% in 2025, reflecting sustained profitability pressure.
Quarterly operating profit fell to KRW 1.7 billion in Q4 2025 before recovering for two straight quarters to KRW 4.0 billion in Q1 2026 and KRW 3.5 billion in Q2 2026.
International cocoa prices surged roughly 90% between March and late August 2026, reigniting cost pressure concerns for the second half.
Holding company Crown Haitai Holdings and related parties control 61.68% of shares, providing stable governance but limiting free float.
Crown Confectionery was founded in 1968 and became a two-brand group after acquiring Haitai Confectionery & Foods in 2005.
Crown's flagship products include Kkukdas, Gukhui Peanut Sandwich, Potto, Big Pie, and My Chew Xylitol, while its subsidiary Haitai sells Ace, Ice Cool, Jayu Sigan, Matdongsan, a nougat bar product, and Gohyang Mandu dumplings.
The business spans confectionery and biscuit manufacturing along with ice cream and frozen foods. Distribution is increasingly weighted toward large discount stores and convenience stores, a shift cited alongside global brand entry and intensifying competition as factors worsening the operating environment.
On the other hand, demand for wellbeing and functional food products is expanding, and the company is focusing on launching functional new products and cutting costs to reinforce profitability.
Recently the company introduced new items such as Gold Manuka hard candy and Naemam Mollang jelly to strengthen channel responsiveness. Haitai has also been segmenting its snack and biscuit lineup, adding a salty caramel flavor to the Ace Thin extension of its Ace brand.
On governance, holding company Crown Haitai Holdings and related parties held 61.68% of common shares as of end-March 2026, maintaining a stable, controlling-shareholder-centered structure.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩114.4B | ₩4.6B | 4.0% |
| 2025Q3 | ₩108.5B | ₩2.7B | 2.5% |
| 2025Q4 | ₩112.5B | ₩1.7B | 1.5% |
| 2026Q1 | ₩108.4B | ₩4B | 3.7% |
| 2026Q2 | ₩110.7B | ₩3.5B | 3.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩413.6B | ₩17.6B | ₩27.1B | 4.3% | 14.1% | 71.7% |
| 2023 | ₩434.7B | ₩28.4B | ₩23.5B | 6.5% | 11.5% | 65.3% |
| 2024 | ₩438.1B | ₩21B | ₩16.8B | 4.8% | 7.8% | 63.1% |
| 2025 | ₩444.8B | ₩15.3B | ₩12.3B | 3.4% | 5.4% | 56.0% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated revenue rose for four straight years, from KRW 413.6 billion in 2022 to KRW 434.7 billion in 2023, KRW 438.1 billion in 2024, and KRW 444.8 billion in 2025.
Operating profit, however, rose from KRW 17.6 billion in 2022 to KRW 28.4 billion in 2023 before falling for two consecutive years to KRW 21.0 billion in 2024 and KRW 15.3 billion in 2025, pushing the operating margin down from 6.5% in 2023 to 3.4% in 2025.
Net profit attributable to owners also declined for three straight years, from KRW 27.1 billion in 2022 to KRW 23.5 billion in 2023, KRW 16.8 billion in 2024, and KRW 12.3 billion in 2025.
On a quarterly basis, operating profit fell from KRW 4.6 billion in Q2 2025 to KRW 2.7 billion in Q3 and KRW 1.7 billion in Q4, before recovering for two consecutive quarters to KRW 4.0 billion in Q1 2026 and KRW 3.5 billion in Q2 2026.
Owners' net profit similarly dropped to KRW 1.8 billion in Q4 2025 before rebounding to KRW 3.4 billion in Q1 2026 and KRW 3.0 billion in Q2 2026. Combined owners' net profit over the most recent four quarters (Q3 2025 through Q2 2026) totaled roughly KRW 10.2 billion, suggesting a gradual recovery phase is underway.
However, data compiled by financial information provider FnGuide on a standalone (parent-only) basis showed Q1 2026 revenue down 1.1% year over year with operating profit and net profit down 35.6% and 31.5% respectively, indicating a divergence between consolidated results and the standalone entity's performance.
This aligns with the company's own explanation that rising dependence on large discount stores and convenience stores, alongside intensifying competition, is worsening the operating environment.
In Korea's confectionery market, Lotte Wellfood and Orion occupy the top tier by scale; Orion reported first-half 2026 consolidated revenue of KRW 1.8239 trillion and operating profit of KRW 298.0 billion, a far larger scale than Crown Confectionery.
On the raw material side, international cocoa prices nearly doubled within half a year, raising cost concerns for the second half among domestic confectionery makers that produce chocolate-containing products.
The ICE September delivery cocoa futures price stood at about $6,046 per ton, up roughly 90% from the March average of $3,186.
Some in the securities industry had expected cocoa input costs to decline meaningfully starting in the third quarter of 2026, but a persistently elevated won-dollar exchange rate is cited as a factor offsetting that cost relief.
Indeed, the won-dollar rate has been reported around the 1,380 level, up 8.8% over the past three months, adding to the burden for food companies reliant on imported raw materials.
Against this backdrop, large players such as Lotte Wellfood and Orion have reportedly kept domestic product prices frozen, absorbing cost increases internally.
Crown Confectionery and Haitai, being relatively smaller players, remain exposed to the same raw material volatility as their larger rivals while potentially having more limited pricing power of their own.
No official numerical guidance from the company has been confirmed, but the pace of new product launches has continued steadily.
Crown Confectionery launched new snack items such as the Shinjjang cauldron-roasted rice snack in January 2026 and Big Cone in August 2026, reinforcing its response in convenience store and online channels.
Haitai also added a salty caramel flavor to its Ace Thin lineup in August 2026 and, in June, launched a five-item summer limited 'Cool Edition' using Homerun Ball, Oh Yes, French Pie, a yanggaeng product, and Matdongsan to strengthen seasonal marketing.
Consumer posts related to Haitai's summer new products reportedly jumped to 190 in May 2026 from just 28 in the prior month of April.
However, with renewed cocoa price increases and a persistently high exchange rate as second-half cost variables, whether expanded new-product sales translate into margin improvement will likely depend on the company's capacity to absorb costs.
Structural factors such as rising dependence on large discount stores and convenience store channels and intensifying competition remain in place, so whether revenue growth and profitability recovery can occur simultaneously will need to be confirmed in upcoming quarterly results.
The share price stands below the company's per-share net asset value, placing it in a discount range relative to book value.
The price-earnings ratio has moved within its historical multi-year trading band, and with recent quarterly earnings showing signs of recovery after bottoming, valuation metrics are gradually shifting as well. The dividend yield is understood to run below the food and beverage sector average.
Having gone through several years of declining net profit before entering a recent earnings recovery phase, the company's future earnings trajectory remains the key variable that will determine the direction of its valuation metrics.
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 2026-08-23
Consolidated revenue grew for four straight years, from KRW 413.6 billion in 2022 to KRW 444.8 billion in 2025, maintaining top-line expansion. This suggests that channel expansion into large discount stores and convenience stores, along with new product launches, has helped defend sales.
The fact that the top line held up despite intensifying competition can be viewed as a factor supporting brand strength.
Operating profit fell to KRW 1.7 billion in Q4 2025 before improving for two consecutive quarters to KRW 4.0 billion in Q1 2026 and KRW 3.5 billion in Q2 2026. Owners' net profit similarly recovered from KRW 1.8 billion to KRW 3.4 billion and KRW 3.0 billion over the same period.
Combined net profit of about KRW 10.2 billion over the latest four quarters can be interpreted as a signal that the trough has passed.
From the second half of 2025 through 2026, Crown Confectionery and Haitai have continuously launched a variety of new products including Gold Manuka, Big Cone, Ace Thin salty caramel, and the Cool Edition line.
Consumer response to summer limited-edition products, evidenced by a surge in social media posts, suggests marketing efforts are gaining traction. This product diversification could contribute to defending sales across channels.
The operating margin fell for three consecutive years, from 6.5% in 2023 to 4.8% in 2024 and 3.4% in 2025. Despite rising revenue, the steady margin contraction reflects rising selling expenses and intensifying competition. Concerns about a structural weakening of the margin profile cannot be ruled out.
International cocoa prices surged roughly 90% by late August 2026 from their March low, once again increasing cost pressure for the second half. Given the lag in raw material procurement contracts, these increases could progressively feed into manufacturing costs going forward. A persistently high won-dollar exchange rate is also cited as a factor offsetting any cost relief.
Net profit attributable to owners fell for three consecutive years, from KRW 27.1 billion in 2022 to KRW 12.3 billion in 2025, shrinking to less than half. Alongside the decline in operating profit, the contribution from non-operating items also appears to have weakened.
While recent quarters showed a recovery, whether the annual downward trend has fully reversed still requires further confirmation.
Fluctuations in international prices of key raw materials such as cocoa, wheat, and soybeans, along with a rising won-dollar exchange rate, directly affect manufacturing costs. Cocoa prices surged roughly 90% over the past half year, while the exchange rate also rose 8.8% over three months, compounding cost pressures.
Because contract structures introduce a time lag before price changes are reflected in earnings, the impact could persist over the coming quarters.
Rising dependence on sales through large discount stores and convenience stores is cited as a factor increasing selling and administrative expense burdens. Competition continues to intensify from both the entry of global brands into the domestic market and larger rivals such as Lotte Wellfood and Orion.
As Orion's first-half 2026 revenue of KRW 1.8239 trillion illustrates, the scale gap with leading competitors remains substantial.
Holding company Crown Haitai Holdings and related parties held 61.68% of shares as of end-March 2026, concentrating governance control with the largest shareholder group. With a market capitalization of about KRW 0.1 trillion, liquidity may be limited, which could be a factor amplifying share price volatility.
There is also a possibility that minority shareholder rights exercise and market price discovery functions are more constrained than for larger-cap stocks.
Check Q3 2026 consolidated results (revenue, operating profit, net profit) via the quarterly report to see whether the first-half recovery trend continues.
Monitor further movements in international cocoa prices and the won-dollar exchange rate to assess how much of the second-half cost pressure is actually reflected in margins.
Track the distribution expansion and sales performance of new products such as Big Cone and Ace Thin salty caramel, as well as how competitors respond in terms of pricing policy.
Confirm via the 2026 annual business report whether full-year revenue, operating margin, and net profit have actually turned toward recovery, based on finalized figures.
Crown Confectionery has extended revenue growth for four consecutive years since 2022, but its operating margin fell from 6.5% in 2023 to 3.4% in 2025, reflecting clear profitability pressure.
Owners' net profit also declined for three straight years, from KRW 27.1 billion in 2022 to KRW 12.3 billion in 2025, though quarterly results showed two consecutive quarters of recovery in Q1 and Q2 2026 after bottoming in Q4 2025.
Combined net profit over the latest four quarters totaled roughly KRW 10.2 billion, suggesting the trough may have passed, even as new cost variables such as renewed cocoa price spikes and a high exchange rate emerge for the second half.
The new product pipeline continues to operate steadily, but structural factors such as rising dependence on large discount stores and convenience stores and intensifying competition remain constraints on the upside of earnings.
Governance is stable and centered on the controlling shareholder, though the small market capitalization and associated liquidity constraints should also be considered.
Ultimately, whether revenue growth and earnings recovery prove sustainable will need to be confirmed through cost and margin trends over the coming quarters.
Report written 2026-09-05 · Data as of 2026-09-04
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