LOTTE Chemical has reported its financial performance for the first quarter of 2024, revealing revenues of 5,861 billion KRW and an operating loss of 135.3 billion KRW. Despite the operating loss, the company has shown signs of improved profitability compared to the previous quarter.
In an effort to streamline operations and enhance strategic execution, LOTTE Chemical has undertaken significant organizational changes. President & CEO Lee Hun Ki highlighted these changes during a recent conference call. The company has restructured its business units into five distinct categories: Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy. This reorganization aims to facilitate a more systematic approach to strategy implementation and optimize governance across the board.
Breaking down the performance results for the first quarter of 2024:
- Basic Chemicals, comprising LOTTE Chemical Basic Materials Business, LC Titan, LC USA, and LOTTE GS Chemical, recorded revenues of 3,548.9 billion KRW and an operating loss of 130.4 billion KRW. Despite the loss, improvements in monomer product spreads, stable ethane prices, and reduced inventory valuation losses indicate a positive trend. The company anticipates further recovery with the onset of the seasonal peak and alleviation of supply burdens in the domestic market.
- Advanced Materials reported revenues of 1,317 billion KRW and an operating profit of 44.4 billion KRW. Increased sales volume from new customer models contributed to revenue growth, with profitability expected to further improve as demand from forward industries continues to rise.
- LOTTE Fine Chemical generated revenues of 399.4 billion KRW and an operating profit of 10.8 billion KRW. While sales of green material industrial products increased, weak international prices of chlorine-based products impacted overall revenue. Plans are in place to bolster profitability through proactive expansion of green-based industrial and pharmaceutical products.
- LOTTE Energy Materials achieved revenues of 241.7 billion KRW and an operating profit of 4.3 billion KRW. Diversification of customers led to quarterly maximum sales and revenue, resulting in an enhanced profit margin. Continued sales growth is anticipated, particularly in North America.
President & CEO Lee Hun Ki emphasized the company’s commitment to strategic execution through the restructuring of its portfolio and governance. By focusing on efficiency and performance management within strategic business units, LOTTE Chemical aims to drive a more effective transformation of its portfolio.
