Binggrae shares surge nearly 20% on blowout earnings, patriotic campaign buzz ahead of Liberation Day

Binggrae had plenty to smile about on Friday, the day before Liberation Day, as its shares surged nearly 20 percent on the back of blowout second-quarter earnings and renewed attention to its patriotic corporate campaigns.

The ice cream and dairy company closed at 82,400 won ($58), up 19.94 percent from the previous session — its highest closing level in roughly five and a half months since Feb. 26, when the stock ended at 83,200 won. Compared with the end-of-July closing price of 67,700 won, the stock has gained more than 20 percent. The company's market capitalization swelled by about 127 billion won in a single day, rising from 636.7 billion won on Thursday to 763.7 billion won on Friday.

Trading volume reached 1,043,098 shares, more than 30 times the daily average of roughly 34,000 shares recorded over the past three months from May 14 through Thursday.

The catalyst was a preliminary earnings release issued Friday morning. Binggrae reported that its second-quarter consolidated operating profit rose 159.9 percent year-on-year to 69.7 billion won, compared with 26.8 billion won in the same period last year. Sales rose 7.9 percent to 442.1 billion won from 409.6 billion won, while net profit for the period surged 132.5 percent to 56.4 billion won.

The company attributed the sales growth to strong frozen-dessert demand driven by the summer heat and solid exports to key overseas markets including the United States and China, even as domestic consumer spending remained sluggish. The sharp improvement in profitability reflected management efficiency gains — including operational streamlining and the elimination of low-margin products following the absorption merger of Haitai Ice Cream, completed April 1, as well as cuts to selling and administrative expenses.

With Liberation Day approaching, Binggrae's profile as a patriotic company also drew fresh attention. To mark the 81st anniversary of Korea's liberation this year, the company has been running an independence movement campaign called "The Most Brilliant Passport of Korea" in partnership with the Ministry of Patriots and Veterans and the Ministry of Foreign Affairs.

The campaign was conceived to create honorary Republic of Korea passports for 30 independence activists who fought for the country's liberation from abroad but died on foreign soil before seeing it achieved. Binggrae selected the 30 figures based on records from the National Archives of Korean Independence, choosing those who received the Order of Merit for National Foundation at the Independence Medal level or higher and for whom photographic records exist. The list includes Ahn Jung-geun and activists Kim Tae-yeon, Kim Cheon-ik, Park Yeong and Lee Ae-ra, among others.

The physical honorary passports are on display through Oct. 11 at a special exhibition, "The Most Brilliant Passport of Korea," held on the first floor of the Baekbeom Kim Gu Memorial Hall in Yongsan-gu, Seoul. The campaign video, released Aug. 1, surpassed 11 million cumulative views within 14 days, drawing a wave of supportive messages for the company.

This is not Binggrae's first Liberation Day campaign. The company has run one every year since launching a centennial commemoration of the Provisional Government of the Republic of Korea in 2019. Subsequent campaigns included "The World's Latest Graduation Ceremony" for student independence activists in 2023, "Liberation Worn for the First Time" in 2024 — which used AI to restore images of activists who died in prison — and last year's "Liberation Heard for the First Time," which recreated the cheers of independence on the day of liberation. The Binggrae Public Welfare Foundation also continues a scholarship program for descendants of independence activists and recently expanded eligibility to include descendants of other national merit holders.

"Binggrae proactively carried out cost-efficiency measures in the second quarter, including a voluntary retirement program, and the results far exceeded expectations as the merger with Haitai Ice Cream added the benefits of joint raw-material procurement and organizational integration," said Han Yu-jeong, an analyst at Hanwha Investment Securities. "In the second half, the company is expected to sustain a higher earnings capacity than in the past, supported by overseas growth, merger synergies and a leaner cost structure."