PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩260 per share · Prices as of the 2026-10-02 close
Maeil Holdings posted a sharp year-on-year increase in 2025 net profit as raw milk prices stayed frozen for a third straight year, but the company continues to face structural headwinds from declining white milk consumption and an ongoing overhaul of the raw milk quota system.
2025 consolidated revenue reached KRW 2.196tn with operating profit of KRW 64.0bn and owners' net profit of KRW 32.5bn, up sharply from the prior year
Owners' net profit came to roughly KRW 6.6bn in 1Q26 and KRW 8.7bn in 2Q26, showing continued quarter-to-quarter variability
The Korea Dairy Committee decided not to hold a raw milk price negotiation in 2026, keeping the base price frozen for a third consecutive year
Negotiations over the raw milk volume allocation for 2027-2028 are underway, with the outcome likely to affect the cost structure
Beyond the core dairy business, the foodservice (M's Seed) and distribution/leisure (Sangha Farm) subsidiaries also contribute to group earnings
Maeil Holdings was created in May 2017 through a spin-off that separated the holding company (Maeil Holdings) from the dairy operating business (Maeil Dairies), and it now oversees 12 subsidiaries, including one listed company, as a pure holding entity.
As a holding company it satisfies the statutory thresholds of holding at least 30% of listed subsidiaries and 50% of unlisted subsidiaries, and its business is organized into dairy processing, foodservice, and distribution/services segments.
Its core subsidiary, Maeil Dairies, produces white milk, organic milk, infant formula, fermented dairy products, coffee, and plant-based beverages, operating seven domestic and overseas plants and nine sales bases while maintaining a leading position in the premium milk category.
In plant-based beverages, the group holds a leading position through the Maeil Soymilk, Almond Breeze, and Amazing Oat brands.
The foodservice business is run through subsidiary M's Seed, which operates the Paul Bassett coffee chain (150 domestic outlets as of December 2025), the Italian restaurant brand The Kitchen Ilporno, and the multinational dining group Crystal Jade.
M's Seed's revenue grew sharply from KRW 99.1bn in 2020 to KRW 202.3bn in 2023, with operating profit swinging from a loss to a KRW 9.4bn profit over the same period.
Other subsidiaries include the agricultural theme park Sangha Farm, bakery affiliate M's Bakers, and infant-goods company Zero to Seven, which round out the distribution and services segment.
The dairy business benefits from high entry barriers tied to raw milk collection networks, distribution reach, and brand recognition, making it difficult for new entrants to gain scale.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩550.7B | ₩14.5B | 2.6% |
| 2025Q3 | ₩564.5B | ₩23.5B | 4.2% |
| 2025Q4 | ₩546.2B | ₩14.2B | 2.6% |
| 2026Q1 | ₩557.6B | ₩18B | 3.2% |
| 2026Q2 | ₩575.7B | ₩22.7B | 3.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2T | ₩73.4B | ₩6.5B | 3.7% | 1.9% | 90.0% |
| 2023 | ₩2.1T | ₩82.2B | ₩49.7B | 3.8% | 13.0% | 74.4% |
| 2024 | ₩2.2T | ₩78.3B | ₩24.2B | 3.6% | 6.0% | 72.4% |
| 2025 | ₩2.2T | ₩64B | ₩32.5B | 2.9% | 7.5% | 66.3% |
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
Annual revenue rose steadily from KRW 1.979tn in 2022 to KRW 2.146tn in 2023, KRW 2.190tn in 2024, and KRW 2.196tn in 2025. Operating profit, however, slipped from KRW 82.2bn in 2023 to KRW 78.3bn in 2024 and further to KRW 64.0bn in 2025, pushing the operating margin down from 3.8% in 2023 to 2.9% in 2025.
Owners' net profit swung considerably, recovering from a low KRW 6.5bn in 2022 to KRW 49.7bn in 2023, dropping to KRW 24.2bn in 2024, and rebounding to KRW 32.5bn in 2025.
On a quarterly basis, operating profit reached KRW 23.5bn (net profit KRW 9.4bn) in 3Q25 on seasonal strength, before easing to KRW 14.2bn (net profit KRW 13.1bn) in 4Q25, KRW 18.0bn (net profit KRW 6.6bn) in 1Q26, and KRW 22.7bn (net profit KRW 8.7bn) in 2Q26.
The trailing four quarters from 3Q25 through 2Q26 produced combined owners' net profit of about KRW 37.9bn, exceeding the full-year 2024 figure of KRW 24.2bn.
According to consensus data on core subsidiary Maeil Dairies, its 2025 consolidated revenue rose 1.8% year-on-year while operating profit fell 14.7% and net profit rose 23.5%, with commentary noting that lower birth rates and growth in alternative milk products caused white milk sales to stagnate even as demand for premium products increased.
In 1Q26, Maeil Dairies' consolidated revenue is reported to have grown 2.4% year-on-year with operating profit up 44.6% and net profit up 80.6%, driven by growth in lactose-free and organic milk plus investment in Greek yogurt, even as gross profit declined on weaker white milk sales and cost pressure, with cost efficiencies lifting operating profit.
These figures pertain to consensus or preliminary readings at the subsidiary level, and the confirmed annual and quarterly figures for the holding company itself should be read from the consolidated financial statements presented above.
Korea's dairy industry is in a structural decline phase for white milk consumption, driven by demographic shifts from low birth rates and the spread of alternative beverages.
Per-capita white milk consumption fell 9.5% year-on-year last year to 22.9 kilograms from 25.3 kilograms, marking the lowest level since consumption began rising in earnest in the late 1980s.
Meanwhile, raw milk prices have stayed frozen for a third straight year after the Korea Dairy Committee decided not to hold a 2026 price negotiation, since the change in production costs fell short of the 4% threshold required to trigger talks.
However, because roughly 89% of domestically produced raw milk is locked into drinking-milk use under the raw milk quota system, dairy farmers must keep producing and dairy companies must keep purchasing regardless of falling demand, leaving a structural burden in place.
As a result, producers and dairy companies are currently negotiating a reallocation of raw milk volumes between drinking and processing use to be applied in 2027-2028, with industry observers estimating that drinking-milk volume could be cut by anywhere from 14,000 to 43,000 tons.
At the same time, the shift to zero tariffs on imported dairy products such as European sterilized milk is intensifying competition from low-cost imports in the business-to-business market.
Maeil Dairies is responding to these structural pressures by expanding its portfolio of higher-value-added products—premium milk, fermented dairy, and plant-based beverages—that are less directly tied to raw milk pricing, while facing the same industry-wide challenges around raw milk volume negotiations and import competition as rivals such as Seoul Milk and Namyang Dairy.
The most significant near-term variable is the outcome of the raw milk volume reallocation negotiation for 2027-2028.
The first subcommittee meeting was held at the Korea Dairy Committee on May 30, with producer and dairy-company representatives set to hold intensive discussions over the following month, and the adjusted volumes are to take effect from January 2027.
Given that the 2024 negotiation required 14 rounds of talks and took more than two months to conclude, observers expect this round could similarly become a protracted process.
Separately, the government is pursuing a mid- to long-term dairy industry development plan built around three pillars—building a lower-cost raw milk production system, cutting dairy production and distribution costs, and developing new demand for domestic dairy products—and the concrete follow-through on these measures is also worth monitoring.
Since the raw milk price itself has been frozen for three straight years, additional cost pressure from that front appears limited, though the intensity of the volume cuts could alter the revenue contribution of the dairy segment.
The pace at which zero-tariff European sterilized milk penetrates the B2B market is another variable that could affect the price competitiveness of domestic dairy companies.
On the company side, expansion of the premium dairy and plant-based beverage portfolio, along with continued store growth at foodservice subsidiary M's Seed, continue to be cited as offsetting factors against raw milk price risk.
Maeil Holdings needs to be assessed with its complex holding-company subsidiary structure in mind, and it tends to trade at a considerable discount to net asset value relative to its market capitalization, a pattern common among pure holding companies in the Korean market.
Owners' net profit bottomed in 2022 and has since shown a recovery trend, with the trailing four quarters now running above the full-year 2024 level.
Dividends have been paid consistently on an annual basis, which ties into the holding company's structure of relying on dividend income from its subsidiaries' equity stakes while the group remains profitable.
That said, structural industry variables—the raw milk volume negotiation, slowing white milk consumption, and competition from imported dairy products—remain in play, so the durability of the profit recovery will likely hinge on the negotiation outcome and the pace at which the premium product mix expands.
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
Since the Korea Dairy Committee decided not to hold a 2026 price negotiation, the base raw milk price—a core cost variable—has stayed frozen for a third consecutive year.
This has helped stabilize cost pressure in the dairy business and is cited as one factor behind recent quarterly operating profit improvement, though the ongoing volume-side restructuring should be considered alongside it.
Even as the white milk market stagnates, Maeil Dairies has broadened its portfolio into organic and lactose-free milk, Greek yogurt, and plant-based beverage brands such as Maeil Soymilk, Almond Breeze, and Amazing Oat.
These products are relatively less tied to raw milk pricing and can capture margin based on brand value. Foodservice subsidiary M's Seed has also shown growth in both revenue and profit through store expansion.
Owners' net profit fell to a low level in 2022, recovered sharply in 2023, dipped again in 2024, and then rose in 2025, with the trailing four-quarter total now exceeding the full-year 2024 figure. Despite quarterly volatility, the directional trend has been one of sustained profitability rather than losses.
Domestic per-capita white milk consumption fell 9.5% year-on-year to 22.9 kilograms last year, the lowest level since the late 1980s. Demographic shifts from low birth rates are cited as the fundamental cause, which weighs on the long-term growth prospects of the dairy business.
Structural rigidity under the raw milk quota system, where falling consumption is not immediately reflected in volume adjustments, is also flagged as an issue.
The negotiation over raw milk volume reallocation for 2027-2028 is ongoing, and differing positions between producers and dairy companies raise the possibility of a protracted process. The 2024 negotiation, by comparison, required 14 rounds of talks and more than two months to conclude.
The outcome will determine the volume of drinking milk dairy companies must purchase and the associated cost burden.
As tariffs on European sterilized milk and similar products move toward zero, low-cost imports are reportedly gaining ground in the business-to-business market.
Domestic skim milk powder production costs are said to be more than triple those of imports, raising concerns that this price disadvantage could translate into inventory burdens. This is a shared risk across domestic dairy companies.
Under the institutional framework of the raw milk quota system and the tiered pricing system by usage, a mismatch between declining consumption and the production structure persists.
The 2027-2028 volume negotiation outcome could alter the cost and revenue structure, and prolonged talks or failure to reach agreement could extend uncertainty.
With white milk consumption having fallen to its lowest level in nearly four decades, the core dairy product category could continue to face structural demand contraction. The spread of alternative beverages and demographic factors such as low birth rates are variables unlikely to reverse quickly.
As tariffs on imported dairy products such as those from Europe decline, domestic dairy companies could see their relative price competitiveness weaken. In particular, the influx of low-cost imports in the B2B market could pressure the profitability of processed products made with domestic raw milk.
Watch for whether the raw milk volume reallocation negotiation for 2027-2028 is finalized and the scale of any drinking-milk volume cuts, since the outcome will directly affect the dairy segment's cost and revenue structure.
The 3Q26 quarterly report disclosure should be checked for revenue, operating profit, and net profit trends, and whether the effect of the frozen raw milk price is continuing.
Monitor the pace at which zero-tariff imported dairy products such as European sterilized milk penetrate the domestic B2B market and any resulting changes in the price competitiveness of domestic dairy products.
Check for the announcement of concrete follow-up measures under the government's mid- to long-term dairy industry development plan, covering lower-cost production systems, distribution cost cuts, and new domestic dairy demand development.
Maeil Holdings saw a sharp year-on-year increase in 2025 net profit amid a favorable cost environment with raw milk prices frozen for a third straight year, and the trailing four-quarter net profit total has recovered to exceed the full-year 2024 level.
That said, the operating margin declined from 3.8% in 2023 to 2.9% in 2025, and quarterly net profit volatility remains substantial.
On the industry side, structural demand contraction—with white milk consumption falling to its lowest level in nearly four decades—coexists with uncertainty over the 2027-2028 raw milk volume reallocation negotiation.
Intensifying competition from zero-tariff imported dairy products, including those from Europe, is another variable to watch.
The company is addressing these structural pressures by expanding its premium dairy, plant-based beverage, and foodservice segments, and its holding-company structure, which tends to trade at a discount to net asset value, should also be factored in.
On balance, this appears to be a phase where the positive trend of cost stability and profit recovery coexists with structural industry burdens from demand decline, volume negotiations, and import competition.
Report written 2026-09-05 · Data as of 2026-09-04
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