Strong Q1 2026 Performance Offset by Subsidiary Financial Risks and Litigation
Consolidated Q1 2026 revenue of KRW 298.8 billion, operating profit of KRW 16.2 billion, net income of KRW 15.1 billion, up 3%, 32%, and 29% YoY respectively.
Net income attributable to parent of KRW 6.9 billion, EPS of KRW 655 (vs. KRW 593 in prior year quarter, up 10.5%).
Separate revenue of KRW 20.4 billion (including dividend income of KRW 18.7 billion), operating profit of KRW 16.2 billion, net income of KRW 16.5 billion.
Subsidiary Nongup Hoesa Beobin (The Giban) reported a debt-to-equity ratio of 525%, violating the financial covenant (below 200%), resulting in loss of term benefit.
Net debt of KRW 2.8 billion (vs. net cash of KRW 42.3 billion at year-end 2025), with increased borrowings (KRW 148.7 billion) and decreased cash (KRW 145.9 billion).
No share buyback or cancellation during the quarter. Treasury shares held: 2,961,399 shares (acquisition cost KRW 8.5 billion).
Cash dividend of KRW 5.77 billion for FY2025 paid in April 2026.
Consolidated R&D expenses of KRW 1,354 million (6.6% of revenue), up from prior year quarter.
Key subsidiaries like Noroo Paint and Noroo AutoCoatings reported increased operating profit; PCM coatings segment capacity utilization reached 142.7%.