Hansol Paper's Q1 Operating Profit Down 40% Year-on-Year... "Impact of Economic Slowdown"
Operating Profit: KRW 20.34 Billion
Sales: KRW 575.60 Billion
Impact of Economic Slowdown and Decreased Sales Proportion in Advanced Markets
Hansol Paper's consolidated operating profit for the first quarter of this year saw a significant decrease compared to the same period last year. However, after resolving the bad debt issue related to the logistics warehouse in its environmental business division at the end of last year, the company turned to profitability quarter-on-quarter.
On April 30, Hansol Paper announced that its consolidated operating profit for the first quarter of this year was KRW 20.338 billion, a decrease of 40.1% compared to the same period last year. During the same period, sales increased by 7.8% to KRW 575.596 billion. Net profit for the period was KRW 6.712 billion, down 71.7%. The company attributed these results to a decrease in the proportion of sales to advanced markets due to the economic slowdown, and to increases in industrial electricity rates.
However, compared to the previous quarter, both operating profit and net profit returned to the black. Last year, Hansol Paper's environmental business division participated as a contractor in a logistics center construction project, where uncollected construction receivables occurred. After these receivables were written off as bad debt, operating profit temporarily dropped sharply, but as this issue was resolved at the end of last year, the company's performance improved.
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A Hansol Paper representative stated, "In the first quarter of this year, we achieved improved results quarter-on-quarter, driven by a recovery in demand for industrial paper, increased sales of thermal label paper in the United States, and a rise in export exchange rates. In particular, with the bad debt issue in the environmental business division resolved at the end of last year and the prices of key raw materials such as pulp and recovered paper stabilizing, profitability in the paper business has improved."
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