PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close
Farmstory's owner net profit rose sharply in 2025 from a year earlier, but quarterly operating and net profit continue to diverge, underscoring persistent earnings volatility.
2025 consolidated revenue of KRW1.4559 trillion remained within the KRW1.4-1.5 trillion range seen over the past four years.
Owner net profit moved from a loss in 2022 to modest profits in 2023-2024, then improved markedly to KRW30.1 billion in 2025.
In Q1 2026, revenue fell 2.6% year-on-year, and despite an operating profit, owner net profit swung to a loss of about KRW2.0 billion.
The debt ratio declined for four straight years, from 291.3% in 2022 to 186.6% in 2025, indicating improving financial structure.
During the early-2026 African Swine Fever outbreak, feed ingredients (plasma protein) were identified as a transmission route, spotlighting safety-management issues across the feed industry.
Farmstory is a livestock-food company centered on swine compound feed manufacturing and livestock product distribution, and is an affiliate of EG Bio, which itself operates compound feed production and livestock distribution.
The company's structure consists of a feed division, a meat-processing division handling slaughter and processed meat products, and a poultry division. Based on past disclosures, the feed segment has historically accounted for roughly 60% of sales and the meat segment around 30%, underscoring feed as the core pillar.
Its key production affiliate, Seoul Feed, manufactures and sells feed for all livestock types (poultry, swine, cattle, and pets) across four domestic plants, with combined annual sales exceeding KRW300 billion.
At the end of 2014, Farmstory consolidated Farmsworld and Manicker F&G as subsidiaries, achieving both horizontal and vertical integration across swine and poultry.
In the compound feed industry, Harim Group affiliate Farmsco is ranked third and Farmstory fourth, reflecting a competitive landscape dominated by several vertically integrated groups.
Its customer base spans swine and poultry farms nationwide, large retailers, and food-ingredient supply chains, and its livestock distribution business is directly exposed to domestic pork and chicken prices as well as imported meat price swings.
Overall, the vertically integrated structure spanning feed and livestock distribution is both Farmstory's core competitive strength and a source of exposure to upstream disease and raw-material risks.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩371.5B | ₩15.9B | 4.3% |
| 2025Q3 | ₩361.4B | ₩19.3B | 5.3% |
| 2025Q4 | ₩366.6B | -₩3.9B | −1.1% |
| 2026Q1 | ₩347.1B | ₩8.7B | 2.5% |
| 2026Q2 | ₩363B | ₩17.6B | 4.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩31.5B | -₩7.6B | 2.2% | −3.7% | 291.3% |
| 2023 | ₩1.5T | ₩26.2B | ₩10B | 1.7% | 4.7% | 267.7% |
| 2024 | ₩1.5T | ₩40.8B | ₩3.9B | 2.8% | 1.5% | 223.4% |
| 2025 | ₩1.5T | ₩35B | ₩30.1B | 2.4% | 10.7% | 186.6% |
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
Farmstory's consolidated revenue rose from KRW1.4265 trillion in 2022 to KRW1.5002 trillion in 2023, then settled at KRW1.4539 trillion in 2024 and KRW1.4559 trillion in 2025, holding in a similar range for four straight years.
Operating profit fell from KRW31.5 billion in 2022 to KRW26.2 billion in 2023, rebounded to KRW40.8 billion in 2024, then eased slightly to KRW35.0 billion in 2025.
Owner net profit, by contrast, moved from a loss of KRW7.6 billion in 2022 to KRW10.0 billion in 2023 and KRW3.9 billion in 2024 before jumping to KRW30.1 billion in 2025, tracing a different path from operating profit.
On a quarterly basis, Q2 2025 owner net profit (KRW17.6 billion) exceeded that quarter's operating profit (KRW15.9 billion), suggesting a non-operating contribution to earnings, while Q3 2025 operating profit rose to KRW19.3 billion even as net profit fell to KRW10.9 billion.
Q4 2025 saw both operating profit (-KRW3.9 billion) and net profit (-KRW3.4 billion) turn negative, pointing to a clear seasonal or one-off burden.
Q1 2026 revenue came to KRW347.1 billion, down 2.6% year-on-year, and although operating profit was positive at KRW8.7 billion, owner net profit swung to a loss of KRW2.0 billion, again highlighting volatility in non-operating items.
Q2 2026 showed a sharp rebound with revenue of KRW363.0 billion, operating profit of KRW17.6 billion, and owner net profit of KRW11.3 billion.
Cumulative owner net profit over the trailing four quarters (Q3 2025-Q2 2026) stood at KRW16.8 billion, suggesting the underlying profit trend has broadly held despite quarterly swings.
On the balance sheet, the debt ratio declined steadily from 291.3% in 2022 to 186.6% in 2025, and operating cash flow turned from outflows of KRW79.6 billion in 2022 and KRW13.9 billion in 2023 to inflows of KRW28.3 billion in 2024 and KRW77.4 billion in 2025, marking a clear improvement in cash generation.
South Korea's compound feed and livestock industry is structurally exposed to raw material costs, given its heavy reliance on imported grains tied closely to international grain prices and exchange rates.
In early 2026, an African Swine Fever (ASF) outbreak spread domestically, and analysis found that this was the first confirmed case in Korea of ASF transmission through feed ingredients, shocking the industry.
Epidemiological investigation traced the route to blood from infected pigs being supplied to feed ingredient manufacturers, processed into plasma protein feed, and distributed nationwide, prompting the government to strengthen ASF testing across the entire feed manufacturing chain.
During disease outbreaks, affected farms suffer losses while surviving farms can benefit from relatively higher pork prices, often shifting cost pressure onto livestock distribution and meat-processing companies.
In the competitive landscape, Harim Group affiliate Farmsco is ranked third in the compound feed industry and Farmstory fourth, with several other integrated groups such as Sunjin, Woosung, and EG Bio also occupying top positions, sustaining constant price competition.
Amid a policy environment encouraging value-up efforts among KOSDAQ-listed companies, Farmstory and numerous other small and mid-cap food companies have voluntarily disclosed plans to improve profitability and financial soundness.
On the demand side, overall meat consumption does not appear to contract structurally, but when disease outbreaks occur, the burden tends to fall more on distributors' and processors' raw meat sourcing and pricing adjustments than on direct consumer demand.
On April 1, 2026, Farmstory voluntarily disclosed a corporate value-up plan, setting goals to strengthen a profitability-focused management system to boost core earning power and enhance financial soundness through stable financial operations.
This aligns with the company's multi-year trend of steadily reducing its debt ratio, suggesting cost efficiency and profitability improvement are being framed as key priorities. In February 2026, the company decided on a year-end dividend, signaling continuity of its cash dividend policy.
On the ASF front, the government has stated it will establish inspection systems and safety-management measures for feed ingredients such as plasma protein, leaving subsequent regulation as a variable that could affect cost structures and quality-control spending across the feed industry.
The company's next regular disclosure, the Q3 2026 report, must be filed by November 16, 2026, which should shed light on second-half revenue and profitability trends and whether ASF-related effects persist.
Over the medium term, cost efficiency and disease-response capability built on the vertically integrated feed-processing-distribution structure appear to be key variables in reducing earnings volatility, with pork prices and grain input costs expected to continue influencing quarterly profitability.
Farmstory's shares trade at a level discounted relative to net asset value, sitting well below book value per share.
On the earnings side, the company turned from a loss in 2022 to a profit trend in 2023-2025, but given high quarterly volatility, its price-to-earnings multiple has swung widely over the past one to two years depending on the disclosure point, ranging from low single digits to around 30 times.
This reflects the fact that the net profit denominator itself has frequently flipped between profit and loss on a quarterly basis, repeatedly resetting the multiple's baseline.
On the dividend front, the company continued its cash dividend policy by deciding on a year-end dividend in February 2026, though its relative standing versus the KOSDAQ food and tobacco sector average can shift depending on timing and is difficult to characterize definitively.
Ultimately, Farmstory's valuation appears structurally sensitive on a quarter-to-quarter basis to whether its earnings stability persists and to the trajectory of upstream risks such as ASF.
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
Owner net profit improved markedly from a loss in 2022 to KRW30.1 billion in 2025, while the debt ratio fell for four straight years to 186.6%. Operating cash flow also turned from outflows in 2022-2023 to inflows in 2024-2025, clearly improving cash generation.
This trend aligns with the profitability and financial-soundness goals set out in the company's 2026 corporate value-up plan.
The vertically integrated structure spanning feed manufacturing to livestock distribution can serve as a buffer on both the cost and sales sides. Key production affiliates such as Seoul Feed have consistently posted annual sales exceeding KRW300 billion and maintain a product portfolio across all livestock types.
This structure can offer diversification against disease or price shocks affecting any single livestock category.
Farmstory continued its shareholder return policy by deciding on a common-stock year-end dividend again in February 2026. This can be read as supportive of continued dividend capacity, coinciding with the 2025 profit improvement, though future dividend levels will depend on that year's results and board decisions.
Consolidated revenue was nearly flat over four years, from KRW1.4265 trillion in 2022 to KRW1.4559 trillion in 2025. Q1 2026 revenue fell 2.6% year-on-year, extending the stagnation in top-line growth.
The operating margin has also remained thin, in the 1.7-2.8% range, limiting profitability leverage from any top-line expansion.
In Q1 2026, despite a positive operating profit of KRW8.7 billion, owner net profit swung to a loss of KRW2.0 billion. In Q4 2025, both operating profit and net profit were negative, reflecting a large non-operating impact on a quarterly basis that reduces earnings predictability. This volatility makes quarterly results harder for investors to interpret.
During the early-2026 ASF outbreak, feed-borne transmission was confirmed for the first time domestically, highlighting quality-control and regulatory risks across the feed industry. Heavy reliance on imported grain also leaves persistent cost pressure from international grain price and exchange-rate swings.
When disease outbreaks occur, outcomes diverge between affected and surviving farms, while distribution and meat-processing operators face greater exposure to raw meat supply volatility.
During the 2026 domestic ASF outbreak, feed ingredients (plasma protein) were identified as a transmission route, raising safety-management issues across the feed industry. Further disease outbreaks or tightened regulation could affect feed production processes and raw-material procurement costs. The livestock distribution segment is also directly exposed to supply instability from disease spread.
Grain, the main raw material for compound feed, is largely imported, so international grain prices and the won-dollar exchange rate feed directly into costs. If raw material cost spikes are not promptly passed through to selling prices, operating margins could deteriorate further. The historically narrow 1.7-2.8% operating margin range reflects this cost sensitivity.
Recent quarterly results show operating profit and owner net profit frequently diverging in direction. The large non-operating impact drives significant quarterly volatility, which can reduce the reliability of investors' earnings estimates.
On an annual basis as well, net profit swung between losses and gains from 2022 to 2025, suggesting a stable earnings trajectory has not yet fully taken hold.
The Q3 2026 report filing should clarify second-half revenue and operating profit trends and whether ASF-related effects persist.
Progress on the government's follow-up safety-inspection measures for feed ingredients (plasma protein) and any additional ASF outbreaks warrant monitoring.
Trends in domestic pork prices and international grain input costs should be checked for their impact on feed costs and livestock distribution margins.
Whether a year-end dividend is declared and disclosure on the progress of the 2026 corporate value-up plan should be checked.
Built on a vertically integrated structure spanning feed manufacturing and livestock distribution, Farmstory has shown improving earnings quality, moving from a loss in 2022 to owner net profit of KRW30.1 billion in 2025.
At the same time, positive changes in financial structure are evident, with the debt ratio falling for four consecutive years and operating cash flow turning positive.
However, revenue has stagnated in the KRW1.4-1.5 trillion range for four straight years, and the frequent divergence between quarterly operating profit and net profit direction points to notable earnings volatility worth noting.
The early-2026 incident in which feed ingredients were identified as an ASF transmission route highlighted safety-management and regulatory risks across the feed industry, prompting the company to set profitability and financial-soundness strengthening as priorities in its 2026 corporate value-up plan.
Going forward, quarterly results including the Q3 2026 report, follow-up ASF-related regulatory developments, and trends in pork and grain prices are likely to be key variables shaping the earnings trajectory.
Investment judgment should weigh the sustainability of the earnings-improvement trend against upstream risk factors in a balanced manner.
Report written 2026-10-03 · Data as of 2026-10-02
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