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
Having restructured from pizza franchising to pork processing, Daesan F&B returned to trading after a 2025 profit turnaround and a listing-maintenance decision, but negative operating cash flow and legacy governance risks persist.
The pork carcass processing business accounts for over 90% of revenue, while Mr. Pizza remains only as a minority equity stake.
In 2025, consolidated revenue reached KRW 110.8 billion with operating profit of KRW 4.55 billion and owners' net income of KRW 8.32 billion, turning from the prior year's loss to profit.
After a prolonged trading halt tied to accounting issues, the company completed its improvement period in 2026, secured a listing-maintenance decision, resumed trading, and exited administrative-issue status.
Quarterly profitability has continued, but operating cash flow has stayed negative and cash holdings have declined sharply.
Residual governance risks remain, including disclosed embezzlement/breach-of-trust allegations against former management and a pending injunction suit challenging board resolutions.
Daesan F&B began as a homegrown pizza franchise, opening its first Mr. Pizza store in 1990, and expanded rapidly overseas into China and the United States, rising to the number-one position in Korea's pizza industry in the late 2000s, surpassing Domino's Pizza and Pizza Hut.
The company then went through turmoil as a 2016 franchisee-abuse scandal involving former chairman Jung Woo-hyun and his 2017 arrest on embezzlement and breach-of-trust charges triggered a trading halt, leaving the company oscillating between market return and delisting for nine years.
During this period, the company acquired Daesan Pork in 2021 and restructured its business around meat processing. On January 1, 2023, it spun off its pizza segment through a physical division to establish Mr.
Pizza Co., Ltd., and in January 2025 it sold additional shares, reclassifying that business from a subsidiary to an associate. Today, Mr. Pizza's largest shareholder is Golden Tree Co., Ltd. with an 86.09% stake, while Daesan F&B retains only a minority holding.
The corporate name itself has changed repeatedly, moving from MP Group to MP Daesan, then DS EN, before becoming today's Daesan F&B in December 2025.
Currently, the pork carcass business accounts for more than 90% of revenue, and the food-service division's franchise/restaurant operations and the pork division's meat-processing business have both been consolidated at the Daejeong-dong site in Daejeon as the company scales up.
Direct contracts with multiple farms and transactions with several abattoirs have strengthened cost competitiveness, while HACCP and antibiotic-free certifications along with approval to use the Handon (Korean pork) brand identity have reinforced its position as a hygienic pork supplier.
The company also wholly owns MP Fresh and DS Oilbank and holds minority investment stakes in Mr. Pizza (5.57%), Wellib (6.38%), Haim Biotech (8.50%), and Puzzle Ventures (2.16%).
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩29.8B | ₩1.7B | 5.8% |
| 2025Q3 | ₩28.9B | ₩1.1B | 3.8% |
| 2025Q4 | ₩27.3B | ₩1.2B | 4.5% |
| 2026Q1 | ₩25.3B | ₩1.4B | 5.3% |
| 2026Q2 | ₩30.8B | ₩1B | 3.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩150B | -₩5.4B | -₩5.6B | −3.6% | −17.0% | 126.4% |
| 2023 | ₩128.8T | -₩634.9B | -₩8.1T | −0.5% | −31.6% | 144.2% |
| 2024 | ₩102.9B | -₩800M | -₩12.1B | −0.8% | −113.6% | 260.9% |
| 2025 | ₩110.9B | ₩4.6B | ₩8.3B | 4.1% | 34.2% | 53.9% |
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 rose to KRW 110.86 billion from KRW 102.88 billion in 2024, while operating profit turned to KRW 4.55 billion (a 4.1% operating margin) from an operating loss of KRW 0.82 billion (-0.8% margin) in 2024.
Owners' net income likewise swung sharply, from a loss of KRW 12.11 billion in 2024 to a profit of KRW 8.32 billion in 2025.
The prior downturn was clear, however: 2022 revenue was KRW 150.04 billion with an operating loss of KRW 5.37 billion (-3.6% margin), and 2023 revenue was KRW 128.82 billion with an operating loss of KRW 0.63 billion (-0.5% margin), marking three consecutive years of operating losses.
On a quarterly basis, revenue and operating profit were KRW 29.75 billion and KRW 1.73 billion (5.8% margin) in 2Q25, KRW 28.92 billion and KRW 1.09 billion (3.8% margin, with net income of KRW 3.55 billion) in 3Q25, and KRW 27.34 billion and KRW 1.23 billion (4.5% margin, net income KRW 3.00 billion) in 4Q25, establishing a run of quarterly profitability.
Into 2026, revenue and operating profit were KRW 25.34 billion and KRW 1.35 billion (5.4% margin, net income KRW 1.41 billion) in 1Q26, and KRW 30.80 billion and KRW 0.98 billion (3.2% margin, net income KRW 1.92 billion) in 2Q26 — revenue expanded again but operating margin eased from the 5% range toward the 3% range, showing quarter-to-quarter margin volatility.
Notably, in 3Q25 and 4Q25 net income well exceeded operating profit, suggesting a contribution from non-operating items. Owners' net income summed over the most recent four quarters (3Q25 through 2Q26) was roughly KRW 9.87 billion, indicating the profit level has been sustained on an annualized basis.
Cash generation, however, has diverged from the earnings recovery: even as results improved with the resumption of trading, operating cash flow stayed negative and cash holdings fell by more than 70%.
Operating cash flow in 1Q26 was a negative KRW 1.5 billion, a wider outflow than the negative KRW 1.1 billion in the same period a year earlier.
In Korea's domestic pork industry, a combination of reduced supply and higher demand meant that in 2025 the average dressed carcass wholesale price rose 10.0% year-on-year to KRW 5,763/kg.
In the first half of 2026, the impact of African swine fever (ASF) outbreaks pushed prices higher still, with first-half average prices reaching KRW 5,797/kg, up 6.9% from a year earlier.
Entering the second half, however, the trend shifted, as weak consumption that has failed to recover, despite a seasonal decline in hog supply, is limiting further increases in the wholesale price.
Institutional forecasts similarly project that the 2026 hog wholesale price will settle in a lower range of KRW 5,500-5,700/kg than the prior year, as domestic supply increases.
On the demand side, however, analysts note that demand for quality- and safety-certified domestic pork is expected to persist despite price resistance.
Against this backdrop, Daesan F&B positions itself around stable raw-material sourcing and certification-based quality control, and is grouped in market classifications alongside other livestock-related listed firms such as Harim, Maniker, EG Holdings, Farmstory, and Dongwoo Farm to Table.
Compared with larger meat processors that have more diversified sales channels spanning wholesale, secondary processing, and e-commerce, the company's revenue scale remains small, implying relatively high sensitivity of earnings to raw-material prices and consumer spending cycles.
The company's top priority is stabilizing operations following its listing-maintenance decision. The 12-month improvement period granted by the Korea Exchange ended on June 2, 2026, and as a result the exchange issued a listing-maintenance decision on July 22, 2026.
With trading resumed, the company also exited administrative-issue designation.
Ahead of this, a shareholders' meeting on March 31, 2026 passed a par-value share consolidation and articles amendment by special resolution, a move interpreted as preparatory work to normalize the share price and adjust the outstanding share count ahead of relisting.
The company has stated that given the resumption of trading, it is also reviewing measures to stabilize its share price.
Residual risks remain, however, as embezzlement and breach-of-trust allegations against former management totaling KRW 3.82 billion have been disclosed, and an injunction suit challenging board resolutions has also been filed.
Operationally, the seasonal pattern typical of meat processing — front-loading raw material purchases in the first half and converting inventory to cash in the second half — is likely to recur, implying continued quarter-to-quarter cash flow volatility.
No specific capacity expansion or new product launch schedule has been identified in publicly available materials to date, so this will require confirmation through future disclosures.
The company moved from a net loss in 2024 to net profit in 2025, and quarterly profitability has continued through the second quarter of 2026, so the earnings structure itself has shown directional improvement.
The share price appears to trade below net asset value per share, which may reflect a discount factor typical of a stock that went through a prolonged trading halt and audit-opinion issues.
However, given the structural changes over this period — the extended trading suspension, the par-value share consolidation, and changes in the largest shareholder — continuity in historical trading-multiple data is limited, and direct comparison with other listed livestock or food companies warrants caution.
No dividend was paid in the most recent fiscal year, so dividend-related metrics are not established. The fact that operating cash flow has remained negative despite the swing to profit is another factor that complicates judging the share price level from earnings metrics alone.
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
After 2024, when revenue, operating profit, and net income were all in negative territory, every metric turned positive in 2025, and quarterly net profit has continued through 2Q26.
The four-quarter sum of owners' net income has also remained positive, which could be read as a sign of sustained rather than one-off improvement. That said, quarterly operating margins have ranged from the 3% to 6% level, so stability still needs ongoing confirmation.
The company has established sourcing stability and cost competitiveness through direct contracts with multiple farms and transactions with several abattoirs.
Backed by HACCP and antibiotic-free certifications along with approval to use the Handon (Korean pork) brand identity, it is pursuing expansion into large retail chains and online sales channels, positioning a trust-based supply chain at the core of its business. This can act as a relative buffer given the high raw-material price volatility inherent to meat processing.
The audit-opinion issue that caused the prolonged trading halt has been resolved through a re-audit, and the company completed the Korea Exchange's improvement period, achieving a listing-maintenance decision, resumption of trading, and exit from administrative-issue status all together.
Governance normalization efforts, including a change in the largest shareholder and restructuring of the board, have proceeded in parallel. This suggests that uncertainty related to further listing-eligibility issues has eased going forward.
While earnings metrics turned positive, operating cash flow has remained negative and cash holdings have declined sharply. This has been explained as a structural working-capital burden from front-loaded raw-material purchases, but if it recurs, it could increase the need for external financing. This is an area requiring continued scrutiny of the qualitative sustainability of the profit turnaround.
Embezzlement and breach-of-trust allegations against former management remain disclosed, and an injunction suit challenging board resolutions is still ongoing.
Although the formal grounds for the listing-eligibility review have been resolved, the possibility that these disputes could resurface as new sources of uncertainty cannot be ruled out.
The history of repeated changes in the largest shareholder is also worth watching from the standpoint of the consistency of medium- to long-term strategy.
The domestic hog wholesale price in 2026 is forecast to run below the prior year's level as supply increases, and despite a seasonal drop in summer shipments, weak consumption is limiting any price rebound.
This can be a two-edged factor: potentially cost-favorable, but a continuation of weak consumption could also pressure sales volumes or margins. With a smaller business scale relative to larger competitors, the company may also be at a relative disadvantage in pricing power.
Despite the swing to profit, operating cash flow has continued to be negative and cash holdings have fallen sharply. If the working-capital burden from front-loading raw-material purchases recurs, reliance on external financing could increase. Securing stable cash flow to improve the financial structure remains a challenge.
Disclosed embezzlement/breach-of-trust allegations against former management and an injunction suit challenging board resolutions are ongoing. Given the history of repeated changes in the largest shareholder, restoring market confidence in management stability may take time. The outcome of the litigation and whether further disputes arise will need continued monitoring.
Fluctuations in hog carcass prices and imported feed costs directly affect the cost structure. Livestock disease outbreaks such as African swine fever (ASF) can amplify price volatility through supply disruptions.
Competition from imported pork and a slowdown in domestic consumption are also factors that could affect both selling prices and sales volumes.
Around the statutory filing deadline for the 3Q26 quarterly report, it will be worth checking whether the quarterly operating margin trend holds and whether operating cash flow turns positive.
If the injunction suit challenging board resolutions produces a ruling, it should be checked whether governance uncertainty has eased as a result.
It is worth confirming whether the domestic hog wholesale price stays within the institutional forecast range (KRW 5,500-5,700/kg) and how any recovery in consumption affects cost and sales margins.
It should be confirmed whether the stock-stabilization measures the company mentioned are formally disclosed, along with their content and implementation status.
The audit opinion for fiscal year 2026 and compliance with any follow-up listing-maintenance requirements should be reconfirmed.
Daesan F&B has completely transformed its business identity from a food-service franchise once symbolized by Mr. Pizza into a pork-processing-centered company, and it demonstrated a recovery in financial metrics as revenue, operating profit, and net income all turned positive in 2025.
The audit-opinion issue that caused the prolonged trading halt has been resolved through a re-audit, and completing the 2026 improvement period to achieve a listing-maintenance decision, resumed trading, and exit from administrative-issue status can be viewed as a sign of easing structural risk.
Even so, the gap between earnings and cash generation remains unresolved, as operating cash flow has stayed negative and cash holdings have fallen sharply despite the profit turnaround.
Residual governance variables also remain, including embezzlement/breach-of-trust allegations tied to former management and litigation contesting board resolutions, suggesting that full normalization will take more time.
On the industry side, the domestic hog wholesale price is expected to run below the prior year's level in 2026 as supply increases, making the pace of any consumption recovery a key variable.
Overall, this stock appears to sit at a juncture where positive changes from business restructuring and the resolution of listing risk coexist with residual uncertainty around cash flow and governance.
Report written 2026-09-05 · Data as of 2026-09-04
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