• Total consolidated sales in Q3 2023 reached KRW 247.867 billion
• Gross profit margin of 14.7%
• Net profit reached KRW 9.372 billion in Q3 2023
SONGWON Industrial Group released its financial results report for the third quarter of 2023. 3rd in 2023
In the quarter, the group achieved consolidated sales of 247.867 billion won, with revenue declining year-on-year (total sales in the third quarter of 2022 were 350.731 billion won). 3rd
Quarterly, SONGWON’s gross profit margin was 14.7% (Q3 2022: 21.9%), and net profit dropped to
9.372 billion won.
As of September 2023, the group has achieved consolidated sales of 784.266 billion won (as of September 2022: 1,031.899 billion won), with a net profit of 31.954 billion
billion won (as of September 2022: 123.473 billion won).
SONGWON Departments. Amid unfavorable macro- and microeconomic conditions, both the Chemical Raw Materials Division and the Performance Chemicals Division experienced declines in revenue and sales. 3rd 2023
In the quarter, the Chemical Raw Materials Division achieved consolidated sales of KRW 187.386 billion (Q3 2022: KRW 256.289 billion), with sales as of September 2023
582.107 billion won (as of September 2022: 765.56 billion won), while the Performance Chemicals segment’s sales were 60.481 billion won (Q3 2022:
94.442 billion won), and sales as of September 2023 were 202.159 billion won (as of September 2022: 266.339 billion won).
In the third quarter of 2023, the chemical raw materials sector faced weak overall market demand, increased supply, and lower sales prices. Although the Polymer Stabilizers business reported higher revenue in Q3 2023
There was a decline in Q3 2022, but the business performed well due to price adjustment measures implemented in late 2022, newly acquired businesses and lower transportation costs. During the second half of Q3,
SONGWON has also observed increased demand for polymer stabilizers in some markets. Although raw material costs declined in Q2 and Q3 of 2023, in Q3 of 2023,
SONGWON’S FUEL
and Lubricant Additives sales were similar to Q3 2022, with slightly higher revenue. For SONGWON Coatings Division, the 3rd of 2023
The quarter was challenging, characterized by oversupply, sluggish demand, erratic order patterns and intense price competition. Nonetheless, the business continued to attract new customers and aggressively advanced its product development strategy.
As expected, the Performance Chemicals segment grew in 2023 at No. 3
The quarter continued to face the impact of continued demand volatility and economic slowdown in its key markets. Margins in the tin intermediates business improved due to higher tin prices, although revenue and volumes fell due to weaker overall demand, particularly from the automotive industry. for
For PVC, although sales volume competition continued to be fierce in the third quarter of 2023, the launch of new businesses and growth in sales in the Korean market pushed up PVC
profit margin. For the solution polyurethane and thermoplastic polyurethane business, although in 2023 No. 3
The quarter continued to be affected by sluggish demand and the economic situation in South Korea, but stable raw material prices still benefited the business.
Outlook 4th
In the third quarter, market conditions are expected to remain challenging and the geopolitical situation will remain volatile, which will lead to continued weak demand, unpredictable order patterns, and continued price fluctuations. In order to actively respond to the challenging macro environment and enhance financial resilience, SONGWON
will continue to execute on its strategic objectives and leverage its extensive industry knowledge, global reach and diversified product portfolio to deliver positive impact. Looking to the future, the Group is confident in meeting current and future challenges, and will be fully prepared strategically to actively seize new opportunities.
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