Kolon Achieves 158% Surge in Q1 Operating Profit, Returns to Black
Improved Performance at Kolon Industries, Kolon Global, and Kolon Mobility Group
Expanded New Orders and Enhanced Cost Efficiency
Kolon successfully returned to an operating profit in the first quarter of this year, driven by improved performance at Kolon Industries, Kolon Global, and Kolon Mobility Group.
According to a disclosure on May 15, Kolon reported consolidated sales of 1.5188 trillion won and operating profit of 98.8 billion won for the first quarter of this year. Operating profit increased by 158.3% compared to the same period last year, and the company returned to profitability from the previous quarter.
Net loss amounted to 44.7 billion won, continuing to be in the red. However, the loss was reduced by 154.7 billion won compared to the previous quarter.
Kolon Industries, an equity-method affiliate, saw growth in both sales and operating profit thanks to the results of its Operating Efficiency (OE) project and increased sales in the industrial materials and chemical sectors.
Kolon Global, a subsidiary, improved its profitability due to the completion of housing projects with high cost ratios and a strategy focused on selective, high-margin orders. Although sales decreased slightly, operating profit surged significantly due to strengthened site management and improved cost ratios.
Kolon Mobility Group also saw increases in both sales and operating profit, driven by strong sales of premium imported vehicles.
The net loss reflected valuation losses on derivatives related to convertible bonds (CB), due to the rise in Kolon TissueGene's share price. The company explained that these are accounting valuation losses with no actual cash outflow.
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Kolon stated that it plans to continue its profitability-focused growth through expansion of high value-added products and operational efficiency initiatives in Kolon Industries' manufacturing division. The company also reported that Kolon Global secured new orders worth 404.4 billion won in the first quarter, a 19% increase from the same period last year, and is focusing on acquiring high-quality projects.
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