Sajo Donga One: Weak Q1 2026 Results and Major Contingent Liability Risk

Q1 2026 revenue of KRW 155.4B, operating profit of KRW 6.2B, net profit of KRW 4.9B; revenue down 3.1% and net profit down 34.2% YoY.
Debt-to-equity ratio of 274.6%, current ratio of 74.0%, indicating weak financial structure. Total borrowings of KRW 118.7B (short-term KRW 113.0B, long-term KRW 5.7B).
Provision of KRW 167.3B recorded for an antitrust investigation into flour price-fixing; potential additional liabilities.
Cash and cash equivalents of KRW 48.3B increased from year-end, but insufficient relative to current liabilities of KRW 344.6B.
No dividend declared for FY2025 (55th term); suspended from KRW 20 per share in FY2024.
Credit rating: BBB (Korea Ratings, 2021). No share buyback or cancellation plan.
Milling segment contributed KRW 99.6B (64.1%) of revenue; bio-resources segment KRW 55.8B (35.9%).

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