Aseajeji Q1 Operating Profit 21.4 Billion KRW... 33% Decrease YoY

Aseajeji announced on the 15th that it recorded sales of 224 billion KRW, operating profit of 21.4 billion KRW, and net profit of 18.8 billion KRW in the first quarter of this year.

Compared to the same period last year, sales decreased by 10.7%, operating profit by 33.1%, and net profit by 29.7%. Aseajeji's representative explained, "In the first quarter of last year, favorable factors such as increased shipments due to rising packaging demand amid the COVID-19 pandemic, increased production with improved operating rates, and stabilized raw material prices interacted, resulting in good performance. However, in the first quarter of this year, shipments decreased in the paper and paperboard business, and performance declined due to the global economic recession, increased energy costs, and higher equipment maintenance expenses."

Aseajeji expects that from the second quarter onward, the corrugated cardboard market will benefit positively from increased packaging demand coinciding with the summer agricultural product shipping season. In terms of operational risks, the company plans to respond to fluctuations in sales prices and exchange rates.

Overcoming risks such as growing uncertainties in recycling policies in global markets including China and Indonesia, decreased waste paper generation due to sluggish manufacturing operating rates, and increased volatility in pulp purchase prices is expected to be an important task.

Aseajeji's representative stated, "In the second half of the year, a regular major equipment overhaul is scheduled for the paper business division, which is expected to lead to lower operating rates and reduced production volume. We plan to secure inventory in advance to avoid disruptions in shipments, and aim to improve profitability through product portfolio optimization and strengthening export competitiveness."

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