E-Mart (139480.KS) Q1 2026: Operating Profit Hits 14-Year High While Net Income Slips 5%
Cost discipline lifts Q1 operating profit to a 14-year quarterly peak, but a ₩52.9 billion equity-method swing to loss and widening finance costs pull reported net income 5.0% lower despite the headline improvement.
Source: Q1 2026 Quarterly Report (16th Fiscal Year, Q1) — Filed 2026-05-14 with DART | Consolidated Financial Statements | Unit: ₩ billions
E-Mart's consolidated operating profit reached ₩178.3 billion in the three months ended 31 March 2026, the highest Q1 operating result since Q1 2012 (₩190.5 billion), even as consolidated revenue declined 1.3% year-on-year to ₩7.12 trillion. The entire improvement was driven by a 4.2% compression in selling, general, and administrative expenses — not by top-line growth — a distinction that shapes both the quality and the durability of what is, by any historical benchmark, a meaningful operational recovery. Below the operating line, however, equity-method income from associates and joint ventures swung from a ₩11.5 billion gain in Q1 2025 to a ₩41.4 billion loss, while net finance costs widened by ₩14.4 billion; together, these two line items erased the operating gain and reduced consolidated net profit by 5.0% to ₩79.4 billion. The controlling-interest share fell still further — to ₩59.8 billion, down 15.5% — as a disproportionate slice of the operating improvement accrued to minority shareholders. The quarter puts a precise number on the gap between a recovering operating structure and a bottom line still shaped by the group's broader financial architecture.
Note on reporting period: This analysis covers the 16th Fiscal Year Q1 report (filed 2026-05-14), for the three months ended 31 March 2026. Income statement comparisons are against Q1 2025; balance sheet comparisons are against 31 December 2025. Annual FY2024 and FY2025 figures are cited from the summary financial information section for trend reference only. All figures are consolidated. E-Mart consolidates subsidiaries across seven segments: retail, real estate, hotel and leisure, IT, food and beverage, construction, and overseas.
