LG Chem Exceeds 30 Trillion KRW in Annual Revenue for the First Time Ever... Achieved Highest Revenue in History
- 2020 Business Performance Announcement
■ 2020 Business Performance
- Revenue: 30.0575 trillion KRW (9.9% increase compared to previous year)
- Operating profits: 2.3532 trillion KRW (185.1% increase compared to previous year)
■ Q4 Business Performance
- Revenue: 8.858 trillion KRW (18.4% increase compared to previous quarter, 19.9% increase compared to previous year)
* Highest-ever quarterly revenue
- Operating profits: 673.6 billion KRW (25.3% decrease compared to previous quarter, turnaround compared previous year)
■ 2021 target revenue - 37.3 trillion KRW
■ CFO and VP Dong-Seok Cha,
“In 2020, despite the crisis brought on by the coronavirus pandemic, revenue rose by 10% compared to the previous year, thus breaking the 30 trillion KRW mark for the first time-ever, and EBITDA was also recorded at the highest ever at 4.6 trillion KRW, thus creating meaningful results in terms of revenue growth and increased profits”
“This year, the capacities and resources of our company will be focused on the four major business fields of ▲battery materials, ▲sustainable solutions, ▲e-Mobility materials, and ▲global new drug development, as well as in new growth engines as part of our efforts to build a company that can take another leap forward.”
■ 2020 Annual and Q4 Business Performance
LG Chem announced on the 27th that in 2020, its business performance was ▲30.0575 trillion KRW in revenue and ▲2.3532 trillion KRW in operating profits.
Revenue rose by 9.9% and operating profits by 185.1% compared to the previous year, catapulting the company to break the 30 trillion KRW mark in annual revenue for the first time in its history.
Q4 performance was recorded at ▲8.8858 trillion KRW in revenue and ▲673.6 billion KRW in operating profits. Revenue rose by 19.9% compared to the same period in the previous year, thus achieving the highest quarterly numbers in history, while for operating profits, it made a turnaround compared to the same period of the previous year.
LG Chem CFO and Vice President Dong-Seok Cha remarked about the 2020 performance saying, “Despite the crisis brought on by the coronavirus pandemic, revenue rose by 10% compared to the previous year, thus breaking the 30 trillion KRW mark for the first time-ever, and EBITDA was also recorded at the highest ever at 4.6 trillion KRW, thus being a year for creating meaningful results in terms of revenue growth and increased profits.”
He added, “We also had especially significant achievements such as the successful splitting of the battery business and continuously maintaining surplus.”
■ 2021 target revenue - 37.3 trillion KRW
LG Chem set its target revenue for this year at 37.3 trillion KRW, which is 24.1% higher than the previous year.
CFO and Vice President Dong-Seok Cha explained this year’s business plan by stating, “The capacities and resources of our company will be focused on the four major business fields of ▲battery materials, ▲sustainable solutions, ▲e-Mobility materials, and ▲global new drug development, as well as in new growth engines as part of our efforts to build a company that can take another leap forward.”
The detailed business forecast and strategic directions for each business sector are as follows.
The Petrochemicals Company has concerns over increased supply due to newly expanded supplies in Northeast Asia, but the global economy is expected to recover and demand among major industries is also anticipated to gradually improve.
Plans are to lead the eco-friendly solution sector such as biodegradable materials and recycled products related to sustainability, and based on the manufacturing competitiveness of major products such as ABS, NBL and BOE, reviews will be made on making aggressive investments for diversifying the core markets. There are also plans to search for opportunities to enter newly emerging markets such as complex businesses to procure additional growth bases.
The Advanced Materials Company is expected to have increased demand in frontline markets such as batteries, OLED and IT, and our plans are to acquire production capacities to concentrate on fostering high nickel battery materials, while also actively pursuing the development of additional battery materials including cathode binders and radiant adhesives. We will also continue to expand the e-Mobility materials business such as engineering materials and automobile display materials to keep pace with the lightweight automobile and electro-motion trends.
The Life Science Company is expected to post higher than 10% growth in revenue this year as it begins supplying the new Eupolio (polio vaccine), etc. to UNICEF, while expanding existing businesses such as for YVOIRE (filler), and increasing investments in R&D to strengthen its core capacities for developing new drugs and to construct a new drug portfolio with global competitiveness.
Energy Solutions expects the growth of the EV market to continue and the ESS market to expand centering on large power grids
according to the eco-friendly vehicle policy directions of leading countries around the world, and thus anticipates revenue to grow by more than 50% this year as new EV models are released, EV sales grow, and with increased overseas orders for ESS. There are also plans in place to reinforce preparations for the future through e-Platform businesses, development of next-generation batteries, and constructing cooperative relations.
■ Yearly Performance Comparisons for LG Chem (Unit: 100 million KRW)
■ LG Chem Q4 performance (Unit: 100 million KRW )
■ Sales and Operating Profit per Business Area (Unit: 100 million KRW)