SK Chemicals Q1 Operating Profit 25.5 Billion KRW... 0.3% Increase from Previous Quarter

"Holding Up Well Amid Global Economic Downturn"

SK Chemicals announced on the 9th that it achieved sales of 302.7 billion KRW and an operating profit of 25.5 billion KRW on a separate basis in the first quarter of this year. These figures represent decreases of 4% and 6%, respectively, compared to the same period last year. Compared to the fourth quarter of last year, sales and operating profit increased by 5% and 0.3%, respectively.

SK Chemicals explained, "Despite the challenging business environment due to the global economic downturn, we maintained a steady performance thanks to our high value-added copolyester product portfolio strategy and the favorable sales of introduced pharmaceuticals."

In the Green Chemicals division, the copolyester business recorded first-quarter sales of 189.5 billion KRW, a 6% decrease compared to 201.7 billion KRW in the same period last year, but operating profit increased by 12% to 26.1 billion KRW from 23.3 billion KRW the previous year. Profitability was secured through continuous application development and strengthening of the high value-added portfolio used in cosmetic containers and other products.

Cosmetic container made of SK Chemicals copolyester material [Photo by SK Chemicals]

In the Life Science division, the pharmaceutical (Pharma) business posted first-quarter sales of 86.2 billion KRW and an operating profit of 7 billion KRW. Sales increased by 12% year-on-year due to steady growth of existing products such as natural substance therapeutics and favorable sales of introduced products to expand the portfolio. However, operating profit decreased by 23% during the same period due to increased selling and administrative expenses and price reductions for some items based on government pricing.

Song Gi-seok, Head of Value Innovation at SK Chemicals, stated, "Although the unfavorable business environment continues due to the global economic downturn and rising costs, we expect stable sales of existing products such as natural substance therapeutics in the pharmaceutical business alongside the expansion of the high value-added product portfolio in the Green Chemicals business."

On a consolidated basis, SK Chemicals recorded first-quarter sales of 364.5 billion KRW and an operating profit of 8.6 billion KRW, influenced by the performance of its subsidiary SK Bioscience. SK Bioscience reported a consolidated operating loss of 29.2 billion KRW in the first quarter of this year, turning from an operating profit of 23.8 billion KRW in the first quarter of last year, as disclosed on the 27th of last month.

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