Recorded 5,861 billion KRW in revenue and 135.3 billion KRW in operating loss in the 1st Quarter of 2024.Established strategic business units and reorganized governance for systematic and strategic execution… Enhanced efficiency in core businesses, adjusted non-core portfolio, and accelerated the development of new future businesses.,President & CEO Lee Hun Ki announced in the conference call, “We have reorganized LOTTE Chemical’s portfolio into five segments—Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy—for systematic strategy execution. We will redefine strategic directions for each portfolio and optimize governance.”… “We will improve operational efficiency and manage performance of each strategic business unit for a more effective portfolio transformation.”
LOTTE Chemical announced on the 9th that it recorded revenues of 5,861 billion KRW and an operating loss of 135.3 billion KRW in the first quarter of 2024 on a consolidated basis, showing improved profitability compared to the previous quarter.
Performance Results for Q1 2024:
- Basic Chemicals (LOTTE Chemical Basic Materials Business, LC Titan, LC USA, LOTTE GS Chemical) recorded revenue of 3,548.9 billion KRW and an operating loss of 130.4 billion KRW. The deficit decreased compared to the previous quarter due to improvements in monomer product spreads, stable ethane prices, and reduced inventory valuation losses. Recovery is expected due to the seasonal peak and easing supply burdens from regular maintenance seasons in the domestic market.
- Advanced Materials recorded revenue of 1,317 billion KRW and operating profit of 44.4 billion KRW. Revenue improved due to increased sales volume from the release of new models by customers. Profitability is expected to further improve with increased sales volume driven by higher demand from forward industries.
- LOTTE Fine Chemical recorded revenue of 399.4 billion KRW and operating profit of 10.8 billion KRW. Sales increased due to higher sales of green material industrial products, but revenue decreased due to weak international prices of chlorine-based products. Profitability is expected to improve through proactive sales expansion of green-based industrial products and pharmaceutical products.
- LOTTE Energy Materials recorded revenue of 241.7 billion KRW and operating profit of 4.3 billion KRW. Achieving quarterly maximum sales and revenue through customer diversification led to an increase in profit margin compared to the previous quarter. Continued sales growth is anticipated due to increased sales volume to North America.
During the conference call on the same day, LOTTE Chemical President & CEO Lee Hun Ki provided investors with insights into the company’s strategic direction.
President & CEO Lee Hun Ki stated, “To systematically execute our strategy, we have reorganized LOTTE Chemical’s portfolio into five segments: Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy. We have also redefined the strategic direction for each portfolio and optimized governance. This governance restructuring aims to enhance operational efficiency and performance management by focusing on strategic business units, facilitating a more effective portfolio transformation.”
