SG, 1Q Sales 15.3 Billion KRW Up 48% YoY... "Gradual Performance Improvement Expected Due to Increased Public Construction Orders"

SG, the No.1 asphalt concrete specialist company in Korea, announced on the 17th that its consolidated sales for the first quarter of this year reached 15.3 billion KRW, marking a 48% increase compared to the same period last year. Operating loss for the same period slightly increased to 5.9 billion KRW compared to the previous year.

The operating loss in the first quarter was due to seasonal factors. The company stated that from the second quarter, the market share of its asphalt concrete products will expand, leading to a recovery in profitability. In March, SG signed a supply contract worth 72.3 billion KRW with the Public Procurement Service, securing public construction projects amounting to about 80% of the previous fiscal year’s sales, which is expected to improve performance.

Notably, from this year, asphalt and asphalt concrete products have been partially removed from the “Small and Medium Enterprise Competitive Products” category, alleviating institutional restrictions. Through this, SG can now bid on about 20% of public construction projects in regions such as the metropolitan area and Chungnam where bidding regulations have been lifted.

An SG official said, “Typically, the first quarter is a crucial period for securing order volumes, and due to seasonal factors and maintenance of plant facilities and equipment, profitability is inevitably low,” adding, “We expect profitability to improve along with additional orders from the second quarter.”

He continued, “The process of laying the groundwork for the Ukraine road reconstruction project is progressing smoothly,” and added, “Based on proactively procured funds, we will acquire an asphalt concrete plant in Ukraine and make thorough preparations to commence the reconstruction project.”

In February, SG established a local subsidiary, ‘SG Ukraine,’ and completed initial investment. The company plans to conduct due diligence on the local asphalt concrete plant in line with its revisit schedule to Ukraine and proceed with acquisition sequentially.

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