KOSDAQFood & Beverage318010

Pharmsville

₩3,510▲ 1.15%2026-10-02 close

Market Cap

₩27.8B

Turnover

₩1,549,084

Volume

452 shares

Shares out.

7.9M

PER

9.7×

PBR

0.4×

EPS

₩387

Dividend Yield

5.35%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close

Report overview

Revenue Shrinks for Four Years, Company Bets on New Product and Exports

Pharmsville has posted shrinking revenue and operating losses every year since 2022, yet has kept net income in the black thanks largely to non-operating items such as financial income, and the company is now pursuing a new anti-obesity probiotic product and overseas platform expansion to reverse the trend.

1
Consolidated revenue fell for four straight years, from KRW 26.1 billion in 2022 to KRW 12.7 billion in 2025.
2
Operating profit turned negative in 2024 and remained in the red in 2025, with the operating loss widening to KRW 673 million.
3
Net income attributable to owners, however, rose to KRW 2.89 billion in 2025 from KRW 1.58 billion in 2024, climbed to KRW 1.2 billion in 1Q26 before easing back to KRW 466 million in 2Q26.
4
The company is targeting a within-quarter launch of a new anti-obesity probiotic material that received individual-recognition approval from the Ministry of Food and Drug Safety, while pursuing entry into Shopee, Qoo10, Rakuten and Amazon.
5
The debt ratio declined from 19.4% in 2022 to 2.9% in 2025, indicating a relatively stable balance sheet.

Business structure

Pharmsville was established in 2000 to operate in the health functional food business and listed on KOSDAQ in 2019.

The company's core business is manufacturing, distributing and selling health functional foods, developing health functional foods and health-oriented foods through a B2C e-commerce platform along with various distribution channels.

Its revenue mix spans immune/antioxidant, diet and inner-beauty, joint health, and nutritional supplement categories, sold through offline channels such as home shopping, department stores, duty-free shops and Olive Young alongside online channels.

The company operates a subsidiary, Pharmsville Biolab, jointly established with Korea University's technology holding company, and a research institute company, Health Coach Biotechnology, established with the Jeonbuk technology holding company, building an R&D structure for new materials.

More recently, it has focused on functional ingredient business built around proprietary materials such as a patented anti-obesity probiotic.

In the first quarter of 2026, sales in the joint/bone health, nutritional supplement, and diet/inner-beauty categories declined amid intensifying competition and shifting consumption trends in the health functional food market, worsening overall results.

In a market crowded with specialized health functional food companies, the company maintains a structure combining its own brands with OEM and material-development business.

Its overseas operations, which previously included an Indonesian subsidiary, are now broadening toward platform-based expansion into China, Southeast Asia and the United States.

Earnings trend

Quarterly revenue · Operating profit

₩3.1B-₩300M25Q2₩3.4B-₩100M25Q3₩3B-₩400M25Q4₩2.5B-₩55,278,43926Q1₩2.4B-₩200M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩26.1B₩4.1B2022₩21.4B₩1.6B2023₩16.7B-₩300M2024₩12.7B-₩700M2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩3.1B	-₩300M	−9.5%
2025Q3	₩3.4B	-₩100M	−3.5%
2025Q4	₩3B	-₩400M	−11.9%
2026Q1	₩2.5B	-₩55,278,439	−2.2%
2026Q2	₩2.4B	-₩200M	−6.8%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩26.1B	₩4.1B	₩4.1B	15.6%	6.5%	19.4%
2023	₩21.4B	₩1.6B	₩3.3B	7.6%	5.2%	11.3%
2024	₩16.7B	-₩300M	₩1.6B	−1.5%	2.5%	3.9%
2025	₩12.7B	-₩700M	₩2.9B	−5.3%	4.3%	2.9%

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

Earnings analysis

Annual results show revenue contracting alongside deteriorating profitability. Revenue fell for four consecutive years, from KRW 26.1 billion in 2022 to KRW 21.4 billion in 2023, KRW 16.7 billion in 2024 and KRW 12.7 billion in 2025.

Operating profit was positive in 2022 (KRW 4.06 billion, 15.6% margin) and 2023 (KRW 1.63 billion, 7.6% margin), but turned negative in 2024 (KRW -258 million, -1.5%) and widened further in 2025 (KRW -673 million, -5.3%).

Net income attributable to owners, by contrast, moved differently — falling from KRW 4.06 billion in 2022 and KRW 3.31 billion in 2023 to KRW 1.58 billion in 2024, then rising back to KRW 2.89 billion in 2025.

On a quarterly basis, revenue briefly rose from KRW 3.06 billion in 2Q25 (operating loss KRW 291 million, net income KRW 466 million) to KRW 3.37 billion in 3Q25 (operating loss KRW 119 million, net income KRW 494 million), before falling for three straight quarters to KRW 2.96 billion in 4Q25, KRW 2.49 billion in 1Q26 and KRW 2.38 billion in 2Q26.

The operating loss narrowed to its smallest of the five quarters at KRW 55 million in 1Q26, then widened again to KRW 162 million in 2Q26. Net income spiked to KRW 1.2 billion in 1Q26 before falling back to KRW 466 million in 2Q26, a swing that appears driven by non-operating items rather than a revenue recovery.

Operating cash flow was positive at KRW 5.2 billion and KRW 4.65 billion in 2022 and 2023, turned negative at KRW -347 million in 2024, and returned to positive territory at KRW 1.89 billion in 2025.

Total equity kept rising despite the revenue and operating profit contraction, from KRW 62.7 billion in 2022 to KRW 66.5 billion in 2025, while the debt ratio fell sharply from 19.4% to 2.9% over the same period.

Industry analysis

South Korea's health functional food market is segmented into categories such as weight management, joint/bone health, immunity and probiotics, with both pharmaceutical companies and specialized players simultaneously rolling out new products and brands in a competitive landscape.

The diet/inner-beauty, joint health and nutritional supplement categories in which Pharmsville operates are sensitive to shifts in consumption trends, and in the first quarter of 2026 declines in these categories were cited as the main driver of the company's overall deterioration.

Amid competition from similarly sized specialized firms such as Novarex, Nutri and HL Science, larger pharmaceutical and conglomerate-affiliated consumer health brands have also been expanding their probiotics and postbiotics lineups, increasing market entry.

In this environment, diversifying distribution channels and securing differentiated functional ingredients have become key survival strategies for small and mid-sized players.

Pharmsville is attempting to differentiate itself at the ingredient level by obtaining individual-recognition approval from the Ministry of Food and Drug Safety for its proprietary probiotic material, aiming to leverage it for both finished products and ingredient supply domestically and abroad.

That said, given four straight years of revenue decline, the possibility that its relative competitive position has weakened amid intensifying competition cannot be ruled out.

Outlook

In February 2026, the company received individual-recognition approval (No. 2026-6) from the Ministry of Food and Drug Safety for a diet-related probiotic material, and the company said it is conducting raw material production and safety testing with a target of launching the product within the third quarter at the earliest.

On overseas expansion, the company said it is pursuing collaborations with Chinese influencers and entry into Shopee, Qoo10 and Rakuten, alongside a parallel push into the U.S. Amazon platform, as part of a plan to turn around this year's results.

Strategies involving Wanghong live-streaming and expansion of local offline channels are also under consideration. A company official stated that the firm has set a goal to achieve a turnaround this year, presenting the new product launch and overseas sales expansion as the key drivers of an earnings recovery.

On April 30, 2026, the company voluntarily disclosed a corporate value-up plan to the KOSDAQ Market Division, formally communicating shareholder value enhancement measures.

That said, the exact timing of the new product launch and the scale of any overseas channel sales contribution have not yet been finalized, and whether third-quarter revenue and profitability actually recover will need to be confirmed through future quarterly disclosures.

Valuation

PER

9.7×

PBR

0.4×

ROE

4.5%

EPS

₩387

BPS

₩8,601

Dividend per share

₩200

The current share price trades at a level below the company's book value attributable to owners, meaning the market is applying a discount relative to the accounting equity base.

This discount, however, needs to be read alongside an earnings trend in which revenue has declined for four consecutive years and operating results have remained in the red for two straight years.

Net income has stayed positive separately from operating results due to non-operating items, and whether this pattern is repeatable or merely temporary is a variable that will need continued confirmation through quarterly disclosures.

The company has maintained a track record of cash dividends, though the size and continuation of any dividend can vary each year depending on board decisions and performance.

A low debt ratio and steadily growing total equity are worth noting from a financial-stability standpoint, but these should be viewed separately from the question of whether the core operating business can recover its earnings power.

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

Bull factors

New Product and Overseas Channel Expansion

The company plans to launch its FDA-recognized anti-obesity probiotic material, which also received individual-recognition approval domestically, within the third quarter, while simultaneously pursuing entry into multiple overseas platforms including Shopee, Qoo10, Rakuten and Amazon.

If the new product and overseas sales expansion succeed, they could provide a potential catalyst to reverse a revenue trend that has declined for four straight years. The company itself has presented these as the key drivers of an earnings turnaround.

Low Debt Ratio and Steady Equity Growth

The debt ratio declined sharply from 19.4% in 2022 to 2.9% in 2025, while total equity grew from KRW 62.7 billion to KRW 66.5 billion over the same period. Even as operating losses have persisted, the balance sheet itself has remained stable, which is worth noting. This suggests the company has room to restructure its business without relying on external financing.

Net Income Has Remained Positive

Even as operating profit remained negative for two consecutive years, net income attributable to owners rose from KRW 1.58 billion in 2024 to KRW 2.89 billion in 2025, and expanded further to KRW 1.2 billion in the first quarter of 2026. The company has attributed this to an increase in financial income.

Separate from the operating results, the fact that net income has consistently stayed positive is confirmed in the financial statements.

Bear factors

Revenue Has Declined for Four Straight Years

Consolidated revenue fell by more than half, from KRW 26.1 billion in 2022 to KRW 12.7 billion in 2025, and declined sequentially for three consecutive quarters from 4Q25 through 2Q26. Intensifying competition and shifting consumption trends in the health functional food market have been cited as the main causes.

A continually shrinking revenue base is a headwind when assessing the potential impact of the planned new product and overseas channel expansion.

Operating Losses Have Persisted and Widened

Operating profit was negative for two consecutive years, at KRW -258 million in 2024 and KRW -673 million in 2025, with the loss size growing. In four of the last five reported quarters, the company posted an operating loss.

A recovery in profitability in the core health functional food manufacturing and distribution business has not yet been confirmed.

Questions Around the Quality of Net Income

The reason net income attributable to owners has remained positive is explained by non-operating items such as financial income rather than by the core operating business.

The jump in net income to KRW 1.2 billion in 1Q26 followed by a pullback to KRW 466 million in 2Q26 also appears to stem from swings in non-operating items rather than a revenue recovery. This earnings structure needs to be distinguished from sustainable cash-generating capacity through core operations.

Risk factors

Risk of Delayed Revenue and Profitability Recovery

With revenue declining for four straight years and operating losses persisting for two years, if the new product launch and overseas channel expansion do not proceed as planned, the timing of any earnings turnaround could be pushed back further.

If competition in the domestic health functional food market continues to intensify, further declines in sales of existing product lines are also possible.

Uncertainty Around New Product and Overseas Expansion

The new anti-obesity probiotic product is still at the raw material production and safety testing stage, and the target of launching it within the third quarter could be delayed.

Entry into overseas platforms such as Shopee, Qoo10, Rakuten and Amazon is also still in progress, with the actual scale and timing of any sales contribution not yet confirmed. If overseas marketing and certification costs rise while sales contributions are delayed, this could add further pressure on profitability.

Risk from Reliance on Non-Operating Income

Because net income has remained positive largely thanks to non-operating items such as financial income, separate from operating results, if the source of that non-operating income shrinks or becomes more volatile, net income itself could become unstable.

The wide swing in quarterly net income from KRW 466 million to KRW 1.2 billion illustrates this volatility. Future disclosures will need to be checked to confirm the specific nature and sustainability of these non-operating gains.

What to watch next

September–October 2026
Check disclosures and news reports to confirm whether and when the new anti-obesity probiotic product, which received individual-recognition approval, is actually launched.
Mid-November 2026 (third-quarter report filing)
Check whether third-quarter 2026 revenue and operating results break out of the revenue decline and operating loss pattern seen through the second quarter.
Ongoing through second half of 2026
Monitor additional disclosures or IR materials for progress on entry into Shopee, Qoo10, Rakuten and Amazon, and whether these actually contribute to sales.
Ongoing through second half of 2026
Check for follow-up implementation disclosures (such as treasury shares or dividend policy) related to the corporate value-up plan disclosed on April 30, 2026.

Overall view

Pharmsville shows an unusual earnings structure in which revenue has declined every year since 2022 and operating losses have persisted for two years, while net income attributable to owners alone has remained positive thanks to non-operating items.

Quarterly revenue continued to decline through 2026, and the operating loss narrowed in the first quarter before widening again in the second, so no clear reversal signal has yet been confirmed.

The company has presented the launch of its officially recognized anti-obesity probiotic product and its push into overseas platforms such as Shopee, Qoo10, Rakuten and Amazon as the key drivers of an earnings turnaround, and it voluntarily disclosed a corporate value-up plan in April 2026.

On the financial-stability side, a sharply lower debt ratio and steadily growing total equity are positive, though these are separate metrics from a recovery in core operating profitability.

The timing of the new product launch, the scale of any overseas sales contribution, and the sustainability of the non-operating income that has supported net income are likely to be the key variables determining the future direction of results.

Readers should continue to track these business and earnings developments themselves when forming any investment judgment.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.