LX Inter, Q2 Sales Reach 5 Trillion Won... "Highest Quarterly Record"

[Asia Economy Reporter Yoo Hyun-seok] LX International achieved record-breaking quarterly performance in the second quarter as well as the first quarter of this year, driven by rising resource market conditions, increased shipping freight rates, and growth in cargo volume.

On the 29th, LX International announced that it recorded sales of 5.02 trillion KRW and operating profit of 289.4 billion KRW in the second quarter of 2022 based on consolidated financial statements.

Compared to the same period last year, sales increased by 26.9% and operating profit rose by 130.0%, marking the highest quarterly performance ever. The previous record was sales of 4.9181 trillion KRW and operating profit of 245.7 billion KRW recorded in the first quarter, the preceding quarter. Pre-tax profit and net profit were 332 billion KRW and 230.9 billion KRW respectively, up 118.4% and 108.0% from the same period last year.

On a cumulative basis for the first half of the year, sales totaled 9.9381 trillion KRW, operating profit 535.1 billion KRW, pre-tax profit 633.6 billion KRW, and net profit 454.1 billion KRW. Compared to the first half of last year, sales increased by 30.1% and operating profit by 123.9%. Notably, operating profit in the first half reached 82% of last year’s full-year operating profit. Pre-tax profit and net profit increased by 124.0% and 117.5%, respectively.

An LX International official stated, “External conditions such as rising resource market prices for coal and palm, as well as increased shipping freight rates, have improved. Additionally, efforts to maximize profits during the high market conditions by expanding production and supply to demand destinations have led to growth in scale and profit across all business divisions including resources, trading, and logistics.”

Meanwhile, LX International recently set its mid-to-long-term strategic direction as “becoming a core player in future promising energy sectors” and “contributing to LX Group’s growth through new business creation.” To this end, the company plans to foster nickel and renewable power generation as strategic businesses and additionally secure future profit bases such as eco-friendly materials and logistics center operations. For nickel, it is reviewing multiple assets in Indonesia to build a business foundation through asset acquisition such as mines. It is also participating in the Indonesia Battery Grand Package Project.

In the renewable power generation sector, the company plans to expand asset investments focusing on domestic biomass and Indonesian hydropower to strengthen ESG contributions and stable revenue sources. It is also exploring the potential for fostering the sector through carbon reduction and resource circulation business monetization. Furthermore, to secure additional future profit bases, LX International will continuously discover new business and investment agendas that can contribute to LX Group’s business growth, such as eco-friendly plastics, advanced materials, and logistics center development and operation, and plans to actively consider mergers and acquisitions (M&A).

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