SMCG 2026 Q1 Results: Revenue Growth and Turnaround to Profit, Rising Debt Ratio a Concern
Q1 2026 consolidated revenue of 15.04 billion won (14.2% increase YoY from 13.17 billion), operating profit of 1.36 billion won (turnaround), net profit of 0.94 billion won (vs net loss of 1.62 billion in prior year period).
Total assets 74.95 billion won, total liabilities 32.28 billion won, total equity 42.66 billion won; net debt ratio 73.12% (up from 61.60% at year-end 2025).
Operating cash flow negative at -1.73 billion won; cash and cash equivalents 1.09 billion won (decrease from 3.86 billion at year-end 2025).
Key customers: L'Oréal (Lancôme) and other global brands; sculpted glass container technology applied and mass-produced for China and Japan markets.
Second zero-coupon exchangeable bonds (3,398 million won, maturity 2029) outstanding; exchange price 7,518 won, exchangeable into 451,983 treasury shares.
First quarter after merger; turnaround to profit due to absence of one-time merger costs compared to prior year period.
Foreign exchange sensitivity: 10% change in USD impacts pre-tax profit by 222 million won.