Lotte Fine Chemical Q2 Operating Profit 33.9 Billion KRW...35.1% Decrease YoY

[Asia Economy Reporter Park Soyeon] Lotte Fine Chemical announced on the 29th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 33.9 billion KRW, a 35.1% decrease compared to the same period last year.

Sales amounted to 293.2 billion KRW, down 11.2% from the same period last year. Net profit increased by 62.5% to 65 billion KRW.

Lotte Fine Chemical explained, "Due to the prolonged COVID-19 pandemic, weak demand in upstream industries continued, resulting in a decrease in overall sales and operating profit. However, the operating profit margin remains solid at around 12%."

Pre-tax profit and net profit increased significantly compared to last year, reflecting the proceeds from the sale of shares in its subsidiary Handuk Chemical. Additionally, sales of specialty high value-added materials, such as pharmaceutical-grade cellulose products, increased compared to the previous year.

Lotte Fine Chemical stated that it is proactively continuing investments to advance as a specialty company.

In 2018 and last year, expansions of the cellulose-related factories Hecellos (paint additive) and Mecellos (construction additive) were completed.

In the first half of next year, the company plans to complete an additional expansion of the Mecellos factory worth 115 billion KRW and an expansion of the pharmaceutical-grade cellulose product "Anycoat" worth 23.9 billion KRW.

The company said, "Although uncertainty is increasing due to COVID-19, we will complete the ongoing expansions without delay. We will continue investing in the cellulose line in line with the expanding demand in the upstream market for pharmaceutical products."

This content was produced with the assistance of AI translation services.