Logistics Profit Decline... LX Inter 1Q Operating Profit Down 31.5% YoY

1Q Operating Profit 110.7 Billion Won... Exceeds Consensus

LX International's operating profit for the first quarter of this year decreased by more than 30% compared to the same period last year. This was due to a decline in resource market conditions, which reduced trading profit margins, and decreased logistics profits amid intensified freight competition.

On the 30th, LX International announced preliminary consolidated results with sales of 3.7761 trillion KRW and operating profit of 110.7 billion KRW. Sales increased by 2.1% year-on-year, but operating profit fell by 31.5%. However, the operating profit exceeded the market consensus forecast of 98.3 billion KRW.

An LX International representative explained, "The decline in resource market conditions and the resulting decrease in trading profit margins, along with reduced logistics profits due to intensified freight competition, had an impact. Despite difficult external conditions, we achieved results exceeding market consensus through profit maximization activities such as cost reduction."

Compared to the previous quarter, sales and operating profit increased by 1.7% and 41.0%, respectively. This is attributed to the consolidation of the Indonesian AKP mine, the rise in palm oil (CPO) market prices, and strong performance in resource and material trading.

LX International stated, "Based on the stable profit-generating capabilities of existing businesses such as coal, palm, and trading, we are building a virtuous cycle structure by investing in strategic growth areas such as secondary battery minerals and materials. We plan to use the Indonesian AKP nickel mine, acquired earlier this year, as a solid profit source and a stepping stone for portfolio transformation, expanding the value chain into core secondary battery minerals and battery materials."

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