LG Sangsa Records Operating Profit of 49.9 Billion KRW in Q1... Strong Performance Amid COVID-19

[Asia Economy Reporter Kiho Sung] LG Sangsa announced that it recorded an operating profit of 49.9 billion KRW in the first quarter of this year. Considering the economic downturn due to the impact of the novel coronavirus disease (COVID-19), this is regarded as a solid performance.

On the 23rd, LG Sangsa disclosed through electronic public filings that it recorded consolidated sales of 2.4498 trillion KRW and an operating profit of 49.9 billion KRW in the first quarter of this year. Compared to the same period last year, sales decreased by 3.7% and operating profit decreased by 6.4%.

Sales slightly declined due to factors such as the drop in LCD panel prices in the industrial goods and solutions sectors, and operating profit was partially reduced due to decreased coal trading profits and weak petrochemical market conditions, despite improved earnings from increased urgent logistics volume and stabilization of new logistics center operations (W&D) business.

An LG Sangsa official stated, “In an uncertain management environment, we are prioritizing the establishment of a business structure and strategy that minimize various management risks and are actively considering entering new businesses for future growth. We will focus on further strengthening the company’s profitability and growth based on a high level of financial stability.”

LG Sangsa plans to develop its palm business as the next revenue source and expand the role and proportion of distribution and trading, which are the core functions of a trading company.

Additionally, the company is focusing on new businesses including securing nickel ore off-take rights (priority procurement of production), which is a key raw material for secondary batteries, and developing information and communication technology (ICT) solution businesses. Recently, it has also entered the healthcare sector in medical and health fields and plans to expand its business.