PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close
WooGene B&G, an animal health and vaccine specialist, posted its highest-ever consolidated operating profit in the first half of 2026, signaling a turnaround, but net income attributable to owners has remained in the red since 2023.
2025 annual revenue was KRW 54.76bn with operating profit of KRW 0.32bn, an operating margin of just 0.6%, reflecting a persistently low-margin structure.
Q2 2026 operating profit reached KRW 1.38bn, the highest in five quarters, with owner net income turning positive at KRW 1.15bn.
On a trailing four-quarter basis (Q3 2025 to Q2 2026), cumulative owner net income remains in loss.
New pipelines such as Southeast Asian fish vaccines and an autogenous vaccine platform are emerging as growth drivers for the second half.
Governance issues persist around the multi-entity structure spanning pet food subsidiary OSP and its unit Bow Wow Korea.
WooGene B&G is a biotech specialist that researches, develops and manufactures animal health products and vaccines, with a history of technology partnerships with multinational firms such as Novartis of Switzerland and Janssen of Belgium to supply globally sourced animal medicines domestically.
Its core products span antibiotics, nutritional supplements, disinfectants, microbial agents, feed additives and vaccines, distributed through agency networks, direct supply, and public procurement channels including government agencies.
The company expanded from animal medicine into vaccines after launching a Porcine Epidemic Diarrhea (PED) vaccine in 2018, subsequently growing vaccine exports to Thailand, Vietnam and Mexico.
Its subsidiary OSP is a KOSDAQ-listed producer of organic-based premium pet food on an ODM basis, with WooGene B&G holding a 57.57% controlling stake. OSP acquired Bow Wow Korea in 2022, a company with pet treats and distribution networks, to diversify its product and channel mix.
CEO Kang Jae-gu holds leadership roles across all three entities—WooGene B&G, OSP, and Bow Wow Korea—pursuing a pet healthcare value chain spanning animal medicine, pet food manufacturing, and pet food distribution.
Competitively, the company ranks among the leaders in Korea's animal medicine manufacturing sector by revenue, alongside peers such as GC Veterinary Pharma and Daesung Microbiological Labs.
The business model combines stable domestic supply with expanding overseas exports, with recent inroads into Southeast Asia and Latin America emerging as a key axis of revenue diversification.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩13.7B | ₩200M | 1.5% |
| 2025Q3 | ₩13.2B | -₩800M | −5.8% |
| 2025Q4 | ₩13.5B | ₩500M | 3.4% |
| 2026Q1 | ₩14.3B | ₩700M | 4.9% |
| 2026Q2 | ₩15.5B | ₩1.4B | 8.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩43.7B | ₩1.2B | ₩800M | 2.6% | 2.4% | 41.7% |
| 2023 | ₩57.9B | ₩700M | -₩1.2B | 1.2% | −3.5% | 68.1% |
| 2024 | ₩55.7B | ₩300M | -₩5.2B | 0.5% | −18.8% | 62.6% |
| 2025 | ₩54.8B | ₩300M | -₩1.8B | 0.6% | −5.8% | 70.5% |
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 annual revenue rose from KRW 43.7bn in 2022 to KRW 57.92bn in 2023, before declining for two consecutive years to KRW 55.68bn in 2024 and KRW 54.76bn in 2025.
Operating profit shrank from KRW 1.16bn in 2022 to KRW 0.71bn in 2023 and KRW 0.30bn in 2024, before recovering slightly to KRW 0.32bn in 2025, with the operating margin stuck around 0.5-0.6%.
The bigger issue lies in net income: owner net profit swung from a KRW 0.85bn gain in 2022 to losses of KRW 1.18bn in 2023 and a deeper KRW 5.22bn in 2024, narrowing only to a KRW 1.77bn loss in 2025.
Quarterly, Q3 2025 was weak with an operating loss of KRW 0.77bn and an owner net loss of KRW 0.85bn, and even though Q4 operating profit recovered to KRW 0.46bn, the owner net loss widened to KRW 2.77bn, suggesting one-off items weighed on the bottom line.
Momentum improved in 2026, with Q1 revenue of KRW 14.31bn and operating profit of KRW 0.71bn, followed by Q2 revenue of KRW 15.49bn and operating profit of KRW 1.38bn, the highest in five quarters. Q2 2026 owner net income turned positive at KRW 1.15bn, the first profitable quarter since Q2 2025 (KRW 1.51bn).
Still, on a trailing four-quarter basis (Q3 2025 through Q2 2026), cumulative owner net income remains a loss of KRW 2.50bn, indicating the Q2 improvement has not yet fully offset prior quarterly losses.
Operating cash flow stayed positive from 2022 through 2025 but eased from KRW 6.70bn in 2024 to KRW 3.87bn in 2025, tracking the softer earnings profile.
The animal health and vaccine industry rests on two demand pillars: livestock disease control needs and the growth of the companion animal market.
Domestically, demand for vaccines and disease control against fast-mutating diseases such as Porcine Epidemic Diarrhea (PED), swine influenza and African Swine Fever (ASF) remains steady, supported by government-backed R&D programs including regulatory-free special zones.
Overseas, expanding aquaculture in Southeast Asia is driving demand for fish vaccines against pathogens such as iridovirus, with industry estimates putting the related market size at roughly KRW 100bn.
Korea's animal medicine manufacturing sector features numerous small and mid-cap competitors within the top-10 revenue tier, with WooGene B&G positioned among the leaders by revenue.
In the pet market, the number of pet-owning households in Korea is reported to have surpassed 10 million, fueling growing demand for premium and functional pet food.
However, many small-cap KOSDAQ names face delisting-watch risk from failing market capitalization requirements, and the listing status of group subsidiaries such as OSP remains a variable that could affect overall group stability.
The company has stated its intent to push next-generation animal vaccine initiatives in the second half of 2026.
Selected as a core participant in the Jeonbuk Special Self-Governing Province's next-generation animal medicine regulation-free special zone, a project with a total budget of KRW 26.4bn, it is leading the development and field-testing of a farm-customized autogenous vaccine platform aimed at building a commercialization base for autogenous vaccines against fast-mutating diseases such as PED and swine influenza.
Overseas, the company has moved to capture the Asian iridovirus fish vaccine market, launching local clinical trials in Indonesia for marketing authorization of its fish vaccine "Immunis MegaVac,
Net income swung from a profit in 2022 to losses from 2023 onward, with the loss narrowing through 2025 and turning quarterly-positive again in Q2 2026.
However, on a trailing four-quarter basis the company remains in a net loss position, meaning the durability of the earnings recovery will need to be reconfirmed in coming quarterly results.
Shares have traded at levels below book value per share, and management has signaled an expectation that the discount to net asset value could narrow if the earnings improvement proves durable. There is no recent record of dividend payments, limiting the shareholder-return appeal of the stock.
A par-value consolidation implemented in April 2026 (raising par value from KRW 500 to KRW 2,500 via a 5-for-1 share merger) was aimed at adjusting the number of shares outstanding and shedding a low-price stock image, a capital-structure change that does not directly affect underlying fundamentals.
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 H1 2026 operating profit reached KRW 2.08bn, sharply up year-over-year, with Q2 alone delivering KRW 1.38bn in operating profit and KRW 1.15bn in owner net income. Quarterly revenue has also risen for four consecutive quarters, from KRW 13.2bn to KRW 15.5bn. Standalone results show a similarly clear improvement, which can be read as a sign of core-business recovery.
Development of an autogenous vaccine platform through the Jeonbuk regulation-free zone is proceeding alongside expansion into the Southeast Asian fish vaccine market.
Clinical trials initiated for marketing authorization in Indonesia could serve as a foothold for capturing an Asian fish vaccine market estimated at roughly KRW 100bn. The combination of domestic policy support and overseas export expansion carries potential to become a new revenue source.
WooGene B&G's animal health R&D, OSP's premium pet food manufacturing, and Bow Wow Korea's distribution network are combined under unified leadership.
The group is exposed to pet food market growth driven by rising pet ownership, with cross-affiliate synergies such as joint development of functional new products potentially contributing to revenue diversification.
Owner net income posted losses for three consecutive years from 2023 to 2025, with the loss widening to KRW 5.22bn in 2024. While Q2 2026 turned profitable, the trailing four-quarter total remains a net loss.
Distinguishing a one-off gain from a structural earnings normalization will require confirmation over additional quarters.
Annual operating margin stood at just 0.5-0.6% in 2024-2025, leaving the business vulnerable to cost fluctuations. Quarterly results have also shown wide swings, including an operating loss in Q3 2025. As long as the low-margin structure persists, revenue growth may not translate directly into profit growth.
Pet food subsidiary OSP has previously been designated an administrative-issue stock for falling below the KRW 20bn market cap threshold, meaning listing-maintenance concerns across the group have not been fully resolved.
The structure in which the CEO holds concurrent leadership roles across three affiliated companies has been flagged as an area requiring ongoing scrutiny from a governance standpoint.
The 2025 debt ratio stood at 70.5%, up from 41.7% in 2022, while the operating margin has remained below 1%. With owner net income posting multi-year losses, whether the earnings normalization proves sustainable is a key point to watch.
OSP's history of administrative-issue designation and the concurrent-leadership structure across three listed and unlisted affiliates are variables that could affect the group's credibility in capital markets. Ongoing monitoring of intercompany equity relationships and transactions is warranted.
Overseas vaccine revenue growth depends on the pace of marketing authorization and clinical procedures in countries such as Indonesia. Domestically, disease control and vaccine demand can shift rapidly depending on outbreaks such as African Swine Fever, exposing the company to policy and epidemic-related variables.
Check whether Q3 2026 results sustain the Q2 profit turnaround and revenue growth trend, and whether trailing four-quarter cumulative net income turns positive.
Track progress of local clinical trials in Indonesia for fish vaccine (Immunis MegaVac) marketing authorization, and whether additional market access in Thailand, Vietnam and elsewhere materializes.
Monitor disclosures on the progress and commercialization timeline of the autogenous vaccine platform field-testing under the Jeonbuk next-generation animal medicine regulation-free zone.
Continue to check disclosures regarding whether subsidiary OSP meets market-cap-based listing maintenance requirements and whether its administrative-issue designation is lifted.
WooGene B&G showed signs of earnings improvement with a record consolidated operating profit in H1 2026, and owner net income turned positive in Q2.
However, multi-year net losses dating back to 2023 and the still-negative trailing four-quarter cumulative net income indicate the durability of this earnings recovery has not yet been fully confirmed.
On the business side, new pipelines such as the autogenous vaccine platform and Southeast Asian fish vaccines are being positioned as growth drivers, alongside value-chain synergies with pet food affiliates OSP and Bow Wow Korea.
That said, the low-margin structure, OSP's history of administrative-issue designation, and governance questions arising from concurrent leadership across three entities are factors that warrant balanced consideration.
It is also worth noting that capital-structure adjustments such as the par-value consolidation do not directly affect underlying earnings. The continuity of upcoming quarterly results and the progress of overseas regulatory approvals will likely serve as key indicators of the company's direction going forward.
Report written 2026-09-05 · Data as of 2026-09-04
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