Maeil Dairies

Maeil Dairies' core business centers on dairy products such as white milk, fermented milk, and cheese, with premiumization efforts through the organic brand Sangha Mokjang and the lactose-free line marketed as easy-to-digest milk.

The nutrition segment is built around the infant formula brand Absolute and the adult nutrition brand Selex, and the company began disclosing its segments separately as dairy, nutrition, and other starting from its recent semiannual report.

In plant-based beverages, the company holds brands including Maeil soy milk, Almond Breeze, and Amazing Oat, and the company states it maintains a leading position in this market. Coffee franchise Paul Bassett and the experiential farm park Sangha Nongwon are operated under the other business segment.

While the dairy segment still accounts for roughly half of revenue, Maeil Dairies' dairy revenue share declined from 52% in the first half of last year to 50.96% in the first half of this year.

The competitive landscape remains a three-way structure with Seoul Milk Cooperative and Namyang Dairy, with intense competition among the three in the white milk market.

Sangha Mokjang is expanding into infant food and premium soy milk categories in a push toward becoming a 'premium family brand.' The company stated in its semiannual report that it plans to expand the nutrition segment into life-stage nutrition solutions and the active senior market to grow into a global nutrition specialist.

Annual revenue rose for four straight years, from KRW 1,685.6bn in 2022 to KRW 1,843.5bn in 2025. However, operating profit peaked at KRW 72.2bn (4.1% margin) in 2023 before declining to KRW 70.3bn (3.9%) in 2024 and KRW 60.0bn (3.3%) in 2025.

Net income attributable to owners, by contrast, jumped from KRW 14.4bn in 2022 to KRW 55.0bn in 2023, dipped to KRW 45.5bn in 2024, then rose again to KRW 56.1bn in 2025.

On a quarterly basis, operating profit moved from KRW 12.4bn in Q2 2025 to KRW 19.9bn in Q3 and KRW 14.7bn in Q4, before improving to KRW 18.8bn in Q1 2026 and KRW 20.4bn in Q2 2026.

Notably, Q2 2026 revenue reached KRW 480.0bn (up 4.8% year-on-year) while operating profit rose 64.4% to KRW 20.4bn, largely driven by a 44.9% cut in advertising expenses from KRW 30.2bn to KRW 16.6bn.

For the first half overall, revenue reached KRW 949.9bn (up 3.6%) and operating profit KRW 39.2bn (up 54.3%), yet cost of goods sold ratio rose from 72.29% to 73.73%, causing gross profit to fall 1.8%.

Raw material purchases including raw milk rose 12.9%, with their share of total purchases climbing from 69.37% to 72.28%, cited as the direct driver of the cost burden.

The newly disclosed nutrition segment saw Q2 operating profit rise from KRW 248 million to KRW 2.71bn, lifting its operating margin from 0.46% to 4.28%. On the cash flow side, operating cash flow has trended down from KRW 151.2bn in 2023 to KRW 74.6bn in 2024 and KRW 51.2bn in 2025.

Korea's dairy industry appears to have defended profitability in the first half of this year despite a structural decline in white milk consumption. Maeil Dairies offset a decline in its dairy revenue share to 50.96% through its formula- and adult-nutrition-centered business.

Seoul Milk Cooperative also saw its milk product revenue share fall from 62.3% to 60.7% year-on-year, yet its consolidated operating profit rose 110.5% on cost efficiency in selling and administrative expenses.

Namyang Dairy similarly posted an 80% rise in first-half operating profit alongside 7.9% revenue growth, indicating a broadly similar pattern of improvement across the three major players.

The companies attributed part of the improvement to a rebound in the birth rate driving formula sales and growth in overseas business. Conversely, raw milk oversupply causing losses in the white milk category, along with rising packaging and imported raw material costs linked to US-Iran tensions, weighed on costs.

Value-added categories such as plant-based beverages, Greek yogurt, and premium organic products are growing, suggesting industry competition is shifting toward premium product lines.

Maeil Dairies stated it plans to keep strengthening domestic and overseas growth centered on high-value nutrition products such as infant formula and plant-based beverages in the second half, while continuing to improve white milk profitability.

Sangha Mokjang entered the infant food market in April with organic baby cheese, fruit puree, and pear-bellflower juice, then expanded its plant-based beverage lineup in August with three premium soy milk products using top-grade domestic black soybeans.

The company said it plans to grow Sangha Mokjang into a 'premium family brand' with a portfolio spanning the entire life cycle from infants to adults. In the first half, the company launched 26 new products, including Selex items focused on blood sugar management and low-sugar plant-based beverages.

Following the merger of Maeil Health Nutrition, the company said it has integrated R&D, marketing, and sales infrastructure to cut management costs and boost synergies across businesses.

Regarding the fatal accident at the Pyeongtaek plant in August, the company halted the affected process and said it would fully review its safety management system, with follow-up measures pending investigation results.

R&D spending stood at about 0.44% of revenue, suggesting new-product-driven portfolio expansion is likely to continue.