LX Hausys Reports 5.2% Drop in Operating Profit Last Year Due to Soaring Raw Material Prices (Comprehensive)

"Expansion of High Value-Added Product Sales This Year"

The premium sheet flooring product 'LX Z:IN (LX Jiin) Flooring Jia Sorijam' launched by LX Hausys on August 25 last year. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The building materials company LX Hausys reported that its operating profit decreased by more than 5% last year. This was due to rising raw material prices, and to offset this, the company plans to increase its high value-added products.

On the 27th, LX Hausys announced that its operating profit for last year was 67.3 billion KRW, down 5.2% from the previous year. Sales increased by 14.3% to 3.472 trillion KRW. Narrowing down to the fourth quarter, the company recorded an operating loss of 2 billion KRW (a turnaround to a loss from the previous year) and sales of 929.2 billion KRW (a 14.3% increase). A company official explained, "However, the average annual price of polyvinyl chloride (PVC), a major raw material, rose by about 60% compared to the previous year, causing a sharp increase in raw material prices and a slight decrease in annual operating profit."

LX Hausys emphasized that it plans to aim for a rebound through high value-added products. A company representative said, "This year, we will accelerate the performance of the total interior business by strengthening competitiveness in kitchen and bathroom products and construction capabilities, and increase sales of high value-added products. We will also promote proactive manufacturing innovation activities to prepare for the deterioration (sharp rise) of raw material prices, pursuing both sales growth and profitability improvement simultaneously."

Meanwhile, LX Hausys announced that it will pay a cash dividend of 300 KRW per common share and 350 KRW per preferred share. The dividend yield is 0.4% for common shares and 1.2% for preferred shares based on the market price, with the dividend record date set as December 31, 2021.

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