Daehan Flour Mills' Q1 2026: Earnings Decline and Rejected Share Buyback Weigh on Stock

Consolidated Q1 2026 sales: KRW 334.3bn (down 1.9% YoY), operating profit KRW 7.0bn (sharp decline), net profit KRW 7.4bn (down 17.8% YoY)
Net debt: negative KRW 143.3bn (excess cash), debt ratio not calculated (net debt negative), strong financial position
At the 75th AGM (2026.3.27), shareholder proposal for 'treasury share acquisition' was rejected; 'treasury share cancellation' not on agenda; share split (KRW 5,000 → KRW 500) passed and effective April 24
Total consolidated assets KRW 1.52tn, liabilities KRW 512bn, equity KRW 1.01tn
Pet food subsidiary (Wooriwa) posted net loss of KRW 1.2bn; food & beverage (Bonabi) net loss KRW 0.9bn, continuing losses
FX sensitivity: 5% USD appreciation reduces pre-tax profit by KRW 3.7bn; derivative valuation gain of KRW 1.8bn
R&D expenses: wheat flour KRW 0.5bn (0.44% of sales), feed KRW 0.2bn (0.18%), pet food KRW 0.6bn (2.83%)