Silla Q1 Operating Profit Up but Sales Down; Net Profit Surges on Subsidiary Sale, Dividend Declared

Consolidated Q1 2026 revenue: KRW 85.9B (down 22.9% from Q1 2025 restated, excluding food service and steel)
Operating profit: KRW 4.5B (vs full-year 2025 KRW 6.7B, indicating margin improvement)
Net profit: KRW 11.8B, including one-time gain from subsidiary sale (㈜넌럭셔리어스컴퍼니)
Board approved cash dividend on Feb 3, 2026 (amount TBD)
Cash and equivalents: KRW 124.5B, borrowings KRW 40B, net cash position
Debt ratio 18.1%, sound financial structure
Key risks: Allowance for doubtful accounts KRW 115.4B (35% of gross receivables), contingent liabilities for joint ventures (guarantees USD 60.2M, etc.)
Completed sale of food service subsidiary, discontinued steel business; portfolio restructuring