LG Chem Achieves Highest Quarterly Performance
- LG Chem Announces 2021 Q2 Business Performance
■ Q2 Business Performance
- Revenue: 11.4561 trillion KRW (65.2% increase compared to same period of previous year)
- Operating profits: 2.2308 trillion KRW (290.2% increase compared to same period of previous year)
■ Continuously improved performance in all business sectors such as petrochemicals, advanced materials, and life science since the previous quarter to achieve distinguished performance
■ CFO Dong Seok Cha,
“Highest-ever achievements through balanced growth in all business sectors including remarkable rise in perform-ance for petrochemicals, expanded battery materials business, and highest-ever recorded revenue in life science”
“We will implement detailed plans based on the three major new growth engines based on ESG such as the
eco-friendly sustainability business, e-mobility focusing on battery materials, and global innovative new drugs”
LG Chem announced its Q2 business performance with ▲sales of 11.4561 trillion KRW and ▲operating profits of 2.2308 trillion KRW, recording the highest-ever business performance.
This is a 65.2% increase in revenue and 290.2% increase in operating profits compared to the same period of the previous year, and it again renewed the previous quarterly high for revenue and operating profits.
LG Chem CFO Dong Seok Cha commented on this saying, “We created the highest-ever achievements through balanced growth in all business sectors including remarkable rise in performance for petrochemicals, expanded battery materials business, and highest-ever recorded revenue in life science.”
He added, “We will implement detailed plans based on the three major new growth engines based on ESG such as the eco-friendly sustainability business, e-mobility focusing on battery materials, and global innovative new drugs.”
Details of Q2 performance and Q3 forecasts for each business unit are as follows.
The Petrochemical Company recorded revenue of 5.2674 trillion KRW and operating profits of 1.3247 trillion KRW. The record-breaking performance was achieved through the distinguished product portfolio including eco-friendly materials such as renewable energy and hygiene, added by the improved demand with the recovering global economy.
It is expected that revenue growth and strong profitability will continue as new facilities are activated such as the Yeosu Second NCC .
The Advanced Materials Company recorded revenue of 1.2969 trillion KRW and operating profits of 94.5 billion KRW. It maintained its revenue growth and strong profitability by expanding anode material shipments and rise in the sales price for engineering materials.
Revenue is expected to continue to grow in Q3 with the expansion of the battery materials business.
The Life Sciences Company recorded revenue of 203 billion KRW and operating profits of 29.1 billion KRW. With the release of the new vaccine product for polio and expanded sales of major products such as Zemiglo and Eutropin, it achieved its highest-ever quarterly revenue and improved profitability.
Revenue is expected to stay strong in Q3 as polio vaccine supply begins shipping out in earnest and as its major products maintain their market share.
LG Energy Solution recorded revenue of 5.131 trillion KRW and operating profits of 815.2 billion KRW. Though there was some impact due to the supply and demand of front industries and setbacks with customer demand, they were recognized as temporary factors, thus improving revenue and profitability.
In Q3, revenue is expected to grow for automobile batteries and small batteries for IT as EV sales increase, and plans are to continue efforts to improve profitability through the early stabilization of additional lines, cutting costs, etc.
Farm Hannong recorded revenue of 210 billion KRW and operating profits of 16.9 billion KRW. Despite the increase of raw material prices, revenue and profitability increased compared to the same period of the previous year by expanding sales for crop protection agents, etc.
Cost pressure, etc. are expected due to rising raw material costs, but the annual performance is forecasted to improve through increased sales of crop protection agents and seeds.
■ LG Chem’s 2Q performance
(Unit: KRW 100 million)
Fluctuation compared to same quarter in previous year
Fluctuation compared to
■ Sales and Operating Profits per Business Unit (Unit: billion KRW)