First quarter 2024 sales of KRW 5.0861 trillion, operating loss of KRW 135.3 billion
■ Establishment of strategic business units and reorganization of governance system for systematic strategy implementation... Streamlining cash cow business, adjusting non-core portfolio, nurturing new future businesses with speed
■ Participating in a conference call, CEO Lee Hoon-ki, said, “To systematically execute the strategy, Lotte Chemical’s portfolio was divided into ‘Basic Chemicals’, ‘Advanced Materials’, and ‘Fine Chemicals’. ', 'Battery Materials', and 'Hydrogen Energy', we plan to reorganize and operate the business, redefine the strategic direction for each portfolio and optimize governance”... “We will improve operational efficiency through governance reorganization and focus on strategic business units.” “We will improve the execution of portfolio transformation by enabling performance management.”
Lotte Chemical announced on the 9th that its provisional results for the first quarter of 2024 (consolidated basis) recorded sales of KRW 5.0861 trillion and operating loss of KRW 135.3 billion, improving profitability compared to the previous quarter.
Lotte Chemical’s performance for the first quarter of 2024 is as follows.
Basic chemicals (Lotte Chemical Basic Materials Business, LC Titan, LC USA, Lotte GS Chemicals) recorded sales of KRW 3.5489 trillion and operating losses of KRW 130.4 billion. The deficit narrowed compared to the previous quarter as monomer product spreads improved, ethane prices stabilized, and inventory valuation losses decreased. A recovery is expected as the supply burden eases due to the arrival of the seasonal peak season and regular maintenance season in the region.
Advanced Materials recorded sales of 1.0317 trillion won and operating profit of 44.4 billion won. Profit improved due to increased sales due to the launch of new models by customers. Profit and loss are expected to improve due to increased sales volume due to increased demand from downstream industries.
Lotte Fine Chemical recorded sales of 399.4 billion won and operating profit of 10.8 billion won. Sales of green material industrial products increased, but sales decreased due to the weak international price of chlorine-based products. We plan to improve profits and losses by actively expanding sales of green material industrial products and food and pharmaceutical products.
Lotte Energy Materials recorded sales of 241.7 billion won and operating profit of 4.3 billion won. Through customer diversification, we achieved the highest quarterly sales volume and revenue, increasing profit rate compared to the previous quarter. Sales growth is expected to continue due to increased sales to North America.
At the conference call on this day, Lotte Chemical CEO Lee Hoon-ki participated and announced the company's strategic direction to investors.
CEO Lee Hoon-ki said, "In order to systematically implement the strategy, Lotte Chemical's portfolio has been reorganized into five businesses: 'Basic Chemicals', 'Advanced Materials', 'Fine Chemicals', 'Battery Materials', and 'Hydrogen Energy'. “We will redefine the strategic direction for each portfolio and optimize governance,” he said. “Through this governance reorganization, we will improve operational efficiency and enable performance management centered on strategic business units to enhance the execution of portfolio transformation.” “He said.