PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩50 per share · Prices as of the 2026-10-02 close
Farmsco has steadily lifted its operating margin even as revenue has contracted, but net income attributable to owners has slipped back into loss territory since a large gain in the second quarter of 2025.
Consolidated operating margin reached 5.2% in 2025, up steadily from 1.0% in 2022.
Net loss attributable to owners over the trailing four quarters (Q3 2025-Q2 2026) totaled KRW 16.1 billion, even as operating profit stayed positive every quarter.
Foot-and-mouth disease reemerged in Yecheon, North Gyeongsang Province in early September 2026, triggering a temporary movement halt across six neighboring counties.
The company is running a three-month 'Challenge 153' campaign from September to expand second-half feed sales.
The Hi-Pork brand was ranked No. 1 in a consumer brand survey for the 15th consecutive year in March 2026.
Farmsco is a comprehensive livestock and food company established in 1999 through a spin-off from Daesang, and it holds a total of seven subsidiaries including four domestic entities and three in Indonesia.
As a Harim Group affiliate, the company operates an integrated production system spanning feed, hog raising, fresh meat, meat processing, and distribution, organized into seven business segments: feed, fresh meat, integration/breeding, meat processing, solar power, fertilizer, and others.
The feed segment produces and sells poultry, swine, cattle, and dog feed as well as corn, operating compound feed plants in Anseong, Jeongeup, Chilgok, Boryeong, and Jeju.
The fresh meat segment supplies pork and meat by-products through slaughtering and processing, while the integration segment covers breeding cattle, hog, and poultry stock.
The meat processing segment manufactures products such as ham and sausages, and the solar and fertilizer segments handle power generation and fertilizer production and supply, respectively. Its flagship Hi-Pork brand has been recognized as Korea's leading pork brand for roughly three decades since launch.
Overseas, the company operates a feed plant and corn drying facilities in Indonesia to expand its presence there. More recently, it has partnered with a fragrance specialist to enter the scent business, aiming to diversify its portfolio and enhance brand value.
Korea's compound feed industry is competitive, with players such as Nonghyup Feed, CJ CheilJedang, Cargill Agri Purina, and Farmstory.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩382.8B | ₩17B | 4.4% |
| 2025Q3 | ₩392.5B | ₩27.5B | 7.0% |
| 2025Q4 | ₩404.3B | ₩15.7B | 3.9% |
| 2026Q1 | ₩399B | ₩19.7B | 4.9% |
| 2026Q2 | ₩433.7B | ₩20.3B | 4.7% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.9T | ₩18.8B | -₩32.8B | 1.0% | −12.4% | 340.2% |
| 2023 | ₩1.9T | ₩31.5B | -₩34.2B | 1.7% | −15.2% | 364.4% |
| 2024 | ₩1.6T | ₩53.9B | -₩70.7B | 3.4% | −48.3% | 606.8% |
| 2025 | ₩1.6T | ₩80.2B | ₩40.9B | 5.2% | 19.8% | 380.6% |
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
Consolidated revenue in 2025 was KRW 1,554.1 billion, slightly down from KRW 1,574.6 billion a year earlier, while operating profit rose to KRW 80.2 billion from KRW 53.9 billion, lifting the operating margin from 3.4% to 5.2%.
Compared with 2022, when revenue was KRW 1,901.5 billion and the operating margin was just 1.0%, this reflects three consecutive years of margin improvement even as the revenue base has shrunk.
Net income attributable to owners posted losses in each of 2022, 2023, and 2024 before turning to a profit of KRW 40.9 billion in 2025.
On a quarterly basis, however, owners' net income of KRW 43.2 billion in the second quarter of 2025 alone exceeded the full-year figure, while subsequent quarters swung back into loss: KRW 2.9 billion in Q3 2025, -KRW 6.4 billion in Q4 2025, -KRW 8.4 billion in Q1 2026, and -KRW 4.3 billion in Q2 2026.
Operating profit, by contrast, remained positive every quarter over the same span, at KRW 27.5 billion, KRW 15.7 billion, KRW 19.7 billion, and KRW 20.3 billion, respectively.
In other words, while operating performance has been consistently profitable, non-operating factors have repeatedly eroded the bottom line over the past year.
The trailing four-quarter (Q3 2025-Q2 2026) net loss attributable to owners totaled KRW 16.1 billion, a clear divergence from the cumulative operating profit over the same period.
Operating cash flow has improved steadily, moving from -KRW 82.1 billion in 2022 to -KRW 5.5 billion in 2023, KRW 23.2 billion in 2024, and KRW 53.1 billion in 2025, while the debt ratio spiked to 606.8% in 2024 before easing to 380.6% in 2025, though it remains elevated.
Korea's compound feed industry is competitive, with numerous players including Nonghyup Feed, CJ CheilJedang, Cargill Agri Purina, Farmstory, Jeil Feed, Sajo Dongah One, Woosung Feed, Daehan Feed, Dongwon Farm's, and TS Feed.
Feed input costs are linked to imported grain prices such as corn and soybean meal as well as the exchange rate, so global grain markets and the won-dollar rate drive cost pressure.
Livestock market conditions are heavily influenced by outbreaks of animal diseases such as foot-and-mouth disease and avian influenza; in 2026, three cases occurred in Ganghwa and Goyang in January-February, six in Yecheon in July, and two more in Yecheon in early September, bringing the year-to-date total to 11 cases.
The September outbreak triggered a 24-hour temporary movement halt for cloven-hoofed livestock farms, slaughterhouses, feed plants, and their workers and vehicles across Yecheon and six neighboring counties including Andong, Uiseong, Sangju, Mungyeong, Yeongju, and Danyang.
Such movement restrictions can temporarily disrupt feed shipments and livestock transport, adding logistics pressure just ahead of the Chuseok holiday peak season.
Overseas, feed demand for livestock in Southeast Asia, particularly Indonesia, is growing, prompting continued expansion by domestic players into the region. Farmsco operates a feed plant and corn drying facilities in Indonesia and has established PT Cahaya Technology Unggas to expand its presence in the local market.
Farmsco is running a three-month 'Challenge 153' campaign from September through November to expand second-half feed sales.
On August 25 in Cheonan, about 160 employees from its feed business division held a campaign meeting and agreed to strengthen value-based sales activities centered on developing new dealers and improving customer farm productivity.
Its food division launched 2026 Chuseok gift sets, including Hi-Pork fresh meat sets, processed meat sets, and Cheonpyeong Hanwoo beef sets, targeting the holiday peak season.
Overseas, expansion of corn and feed operations continues through its Indonesian subsidiary, with PT Cahaya Technology Unggas established to broaden local market penetration.
However, the reemergence of foot-and-mouth disease in Yecheon, North Gyeongsang Province in early September 2026 prompted authorities to raise the alert level to 'severe' for Yecheon and 'caution' nationwide, and how the situation unfolds could affect second-half livestock supply and logistics.
The company received an overall A grade in its 2025 ESG assessment, and its Boryeong plant surpassed monthly sales of 7,000 tons within half a year of opening, reflecting parallel efforts to expand production capacity.
Diversification into new businesses such as the fragrance venture is also underway, though it remains at an early stage with limited impact on results so far.
Equity attributable to owners fell from KRW 263.8 billion in 2022 to KRW 146.3 billion in 2024 before recovering to KRW 207.2 billion in 2025. The price-to-book ratio trades below 1x, meaning the stock changes hands at a discount to net asset value.
With net income attributable to owners in loss over the trailing four quarters, a meaningful price-to-earnings comparison is difficult to construct, which ties back to the fact that the 2025 full-year swing to profit was driven largely by a large one-off gain in the second quarter.
On the dividend side, the company has maintained a policy of continuing cash dividends, though whether this continues going forward may hinge on the trajectory of earnings given recent net income volatility.
Ultimately, the market appears to be pricing in both the positive signal from improving operating profit and the offsetting concerns of net income volatility and an elevated debt ratio.
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
The operating margin improved for three straight years, rising from 1.0% in 2022 to 5.2% in 2025. Margin gains despite a shrinking revenue base suggest improvements in cost structure or product mix. Operating profit has also stayed positive every quarter from Q3 2025 through Q2 2026, reinforcing this trend.
Operating cash flow improved markedly, from -KRW 82.1 billion in 2022 to KRW 53.1 billion in 2025. The sequential improvement through 2023 and 2024 signals a shift toward a more stable cash-generating structure. This could help ease future investment and borrowing pressure.
The Hi-Pork brand has maintained strong consumer recognition, ranking No. 1 in a brand survey for 15 consecutive years. In Indonesia, the company is expanding through feed plant and corn drying operations along with the establishment of PT Cahaya Technology Unggas. It is also pursuing diversification into new businesses such as fragrances.
Owners' net income of KRW 43.2 billion in Q2 2025 exceeded the full-year figure, but the following four quarters all swung into net loss. Despite operating profit remaining positive every quarter, non-operating factors have repeatedly eroded net income. The trailing four-quarter net loss totaled KRW 16.1 billion.
The debt ratio spiked to 606.8% in 2024 before easing to 380.6% in 2025, but it remains elevated. High leverage increases sensitivity to interest rate changes and can constrain financial flexibility. Equity has been recovering, but has not yet returned to a fully normalized level.
Consolidated revenue declined over multiple years, from KRW 1,901.5 billion in 2022 to KRW 1,554.1 billion in 2025. A shrinking revenue base raises questions about the sustainability of future profit improvement.
Since the operating margin gain occurred without revenue growth, further confirmation of resilience is warranted.
Foot-and-mouth disease reemerged in Yecheon, North Gyeongsang Province in early September 2026, bringing the year-to-date case count to 11. A temporary movement halt was imposed on cloven-hoofed livestock farms, slaughterhouses, feed plants, and their workers and vehicles across Yecheon and six neighboring counties. If the situation escalates, further disruption to feed shipments and meat distribution could follow.
Feed costs are heavily dependent on imported grain prices such as corn and soybean meal as well as the won-dollar exchange rate. A sharp shift in global grain markets or the exchange rate could raise cost burdens and disrupt the recent operating margin improvement. This is a common risk across the domestic feed industry, not just Farmsco.
The debt ratio remained elevated at 380.6% in 2025, leaving the company sensitive to interest rate changes. Despite operating profit staying positive over the past year, non-operating factors have repeatedly driven owners' net income into loss. Continued volatility in non-operating results could sustain concerns about financial stability.
Watch whether the Yecheon foot-and-mouth disease outbreak spreads further and when the quarantine zone is lifted. Continued spread could cause additional disruption to feed and meat logistics in neighboring areas.
Check Chuseok gift set sales performance and peak-season meat consumption trends. It is also worth monitoring whether the foot-and-mouth disease movement restrictions affected logistics during this period.
Assess whether the 'Challenge 153' campaign met its second-half feed sales targets and check third-quarter results for whether owners' net income has returned to profit.
Review the full-year 2026 results and dividend disclosure to confirm whether the operating profit improvement trend continued and whether volatility in owners' net income has eased.
Farmsco has steadily improved its operating margin from 1.0% in 2022 to 5.2% in 2025 even as revenue has contracted over multiple years, and operating cash flow has also shown a clear recovery.
However, net income attributable to owners has posted losses in each of the trailing four quarters aside from a large one-off gain in the second quarter of 2025, revealing a clear gap between operating performance and the bottom line.
The debt ratio has declined from its 2024 peak but remains elevated, meaning financial pressure has not been fully resolved. Compounding this, foot-and-mouth disease reemerged in Yecheon, North Gyeongsang Province in early September 2026, bringing quarantine risk back into focus.
On the other hand, the market position of the Hi-Pork brand, expansion of the Indonesian business, and the second-half sales campaign stand as positive business-side factors.
Investors will want to monitor the durability of the operating margin improvement, the drivers behind non-operating earnings swings, and how the foot-and-mouth disease situation develops.
Report written 2026-09-05 · Data as of 2026-09-04
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