[Click eStock] "FromBio, Growth Expected with New Product Launch Next Year"

[Asia Economy Reporter Son Sun-hee] NH Investment & Securities analyzed on the 29th that the health functional food company 'Frombio' is expected to grow next year, supported by the launch of new products. No separate investment opinion or target price was presented.

Frombio's performance this year is expected to be 104 billion KRW in sales and 7 billion KRW in operating profit, representing decreases of 23% and 38.7%, respectively, compared to last year. However, despite sluggish sales, it is also evaluated as a relatively good performance considering the overall downturn in the health functional food market.

Frombio has improved its profit structure by reducing the proportion of home shopping and indirect advertising costs, maintaining a positive earnings trend in the second half of the year. This is attributed to the high repurchase rates maintained across various age groups for its main products, Boswellia and Mastic. In the third quarter, good results were achieved with the addition of inventory accumulation by overseas distributors.

However, the high concentration on the two main products is a concern. Researcher Baek Jun-gi stated, "Next year, the launch of new individual recognition-type health functional food products and new products from the subsidiary Frombio Cosmetic could reduce the concentration on existing products," and added, "Sales of hair loss cosmetics, whose clinical trials will be completed by the end of this year, are expected to be added."

He also noted, "The improvement in operating profit until next year is not expected to be significant, as it coincides with Frombio Cosmetic's brand awareness expansion strategy," adding, "The strategy to reduce the proportion of low-margin sales channels and maintain the development capability of individual recognition-type raw materials, while internalizing the production of main products through the expansion of the Iksan factory, is judged to be positive for long-term profit margin improvement."

This content was produced with the assistance of AI translation services.