Lotte Fine Chemical Reports Q2 Operating Profit of 69.1 Billion KRW, Up 64.5% from Q1

Completion of Cellulose Series Expansion Last Year
Green Materials, Sales Expansion and Profitability Improvement

Lotte Fine Chemical announced on the 31st that it achieved sales of 431.2 billion KRW and an operating profit of 69.1 billion KRW in the second quarter of this year. Compared to the previous year, sales decreased by 37.2% and operating profit by 46.6%.

However, operating profit increased by 64.5% compared to the previous quarter. This was thanks to expanded sales and improved profitability following the completion of the cellulose series expansion in the Green Materials Business Division last year. Sales compared to the previous quarter decreased by 17.9% due to a drop in ammonia prices in the Chemical Business Division.

Looking at each division, sales in the Chemical Business Division recorded 294.2 billion KRW, down 25.1% from the previous quarter. Although sales volume increased somewhat due to expanded demand for chlorine-based caustic soda used as a precursor for secondary batteries, prices of ammonia and chlorine-based products fell as raw material costs such as natural gas and electricity declined since the second half of last year.

Lotte Fine Chemical Ulsan Plant
[Photo by Lotte Fine Chemical]

Sales in the Green Materials Business Division increased by 3.6% from the previous quarter to 137 billion KRW. The main reasons were expanded sales volume of cellulose series products and entering the peak season in front markets such as construction, which improved sales and profitability.

Lotte Fine Chemical is improving its portfolio focusing on high value-added specialty materials for future growth areas such as semiconductors, alternative meat, and plant-based capsules. Mechanical completion of the semiconductor developer raw material (TMAC) is scheduled by the end of the year. The ongoing additional expansion of the cellulose series food and pharmaceutical production line is also planned to be completed smoothly by the first half of 2025.

Lotte Fine Chemical stated, "Second quarter results improved profitability compared to the previous quarter due to proactive expansion of the cellulose series and entering the product peak season. Going forward, we will proactively pursue portfolio improvement centered on high value-added specialty materials for semiconductor, alternative meat, and plant-based capsule applications to enhance profitability and growth."

Lotte Fine Chemical Preliminary Consolidated Earnings for Q2 This Year [Image Source=Lotte Fine Chemical]

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