Gaon Cable (000500.KS) Q1 2026: Profit Up 27% as Copper Spike Burns ₩170.9B Cash
Strong headline growth masks a structural cash drain: surging copper prices consumed ₩207.7 billion in working capital, flipping operating cash flow deeply negative even as earnings beat the prior year.
Source: Quarterly Report (79th Fiscal Year, Q1) — Filed May 15, 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
Gaon Cable posted consolidated revenue of ₩763.58 billion in Q1 2026, a 19.4% year-on-year gain, while operating profit climbed 27.2% to ₩27.83 billion — headline figures that invite optimism. Yet the same quarter produced a ₩170.93 billion operating cash outflow, exposing the structural tension at the heart of the wire and cable industry: when copper prices spike, revenue and inventory inflate in lockstep, consuming cash faster than earnings can replace it. The average copper procurement price surged 36% against the FY2025 full-year average to ₩19,536,000 per tonne, driving ₩207.70 billion of incremental working capital absorption in a single quarter. With the shortfall funded almost entirely through short-term borrowings, the debt ratio rose 17.7 percentage points to 202.5% — a trajectory that demands scrutiny alongside the profit growth headline.
