Lotte Fine Chemical Reports Operating Profit of 139.2 Billion KRW Last Year, Down 26.6% YoY

[Asia Economy Reporter Hwang Yoon-joo] Lotte Fine Chemical announced on the 4th that its operating profit on a consolidated basis last year was 139.2 billion KRW, a decrease of 26.6% compared to the previous year. During the same period, sales amounted to 1.2636 trillion KRW, down 3.6%.

Due to decreased demand in upstream industries caused by COVID-19 and the decline of the KRW-USD exchange rate in the second half of the year, both sales and operating profit decreased; however, the operating profit margin remained steady at around 11%. By product, the profitability of chlorine-based products such as caustic soda and ECH, which are sensitive to economic cycles, worsened in the second half, but stable sales growth of eco-friendly specialty materials in the cellulose category, such as Anycoat (pharmaceutical capsule raw material), helped maintain profitability.

In the fourth quarter, operating profit decreased by 41.1% to 28.5 billion KRW, and sales fell by 7.9% to 303.7 billion KRW.

In line with the eco-friendly goals and ESG business strategy "Green Promise 2030" announced by Lotte Chemical BU on the 2nd, Lotte Fine Chemical is steadily proceeding with a total investment of 180 billion KRW in eco-friendly specialty materials in the cellulose category. Among these, the 115 billion KRW expansion of the Mesellos (construction additive) plant and the 23.9 billion KRW expansion of the Anycoat (pharmaceutical capsule raw material) plant are scheduled to be completed in the first half of this year.

Lotte Fine Chemical stated, "We will continue to make efforts to strengthen ESG management and secure growth potential together with Lotte Chemical BU companies through investments in eco-friendly businesses."

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