● Total consolidated sales in the third quarter of 2023 reached 247.867 billion won
• Gross profit margin reached 14.7%
• Net profit in the third quarter of 2023 reached 9.372 billion won
November 14, 2023 – SONGWON Industrial Group
Released the financial performance report for the third quarter of 2023. In the third quarter of 2023, the group achieved comprehensive 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). Q3, SONGWON
The gross profit margin was 14.7% (Q3 2022: 21.9%). Compared with the third quarter of 2022 (41.376 billion won), 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) and net profit of 31.954 billion won (as of September 2022: 123.473 billion won).
Amid unfavorable macro- and micro-economic conditions across SONGWON’s various divisions, both the chemical raw materials division and the high-performance chemicals division experienced a decline in revenue and sales. In the third quarter of 2023, the chemical raw materials division achieved consolidated sales of 187.386 billion won (Q3 2022: 256.289 billion won), and sales as of September 2023 were 582.107 billion won (as of September 2022: 765.56 billion won) ), while the Performance Chemicals Division’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 reduced sales prices. Although revenue from the Polymer Stabilizers business declined in Q3 2023 compared to Q3 2022, the business performed well due to price adjustment measures implemented in late 2022, new acquisitions and lower transportation costs. performance. In the second half of the third quarter, SONGWON 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 sales volume of fuel and lubricant additives performed similarly to Q3 of 2022, with slightly higher revenue. for
For the SONGWON coatings division, the third quarter of 2023 will be full of challenges, specifically manifested by oversupply, sluggish demand, unstable order patterns and fierce price competition. Nonetheless, the business continued to attract new customers and aggressively advanced its product development strategy.
As expected, the Performance Chemicals segment continued to face the impact of continued demand volatility and economic slowdown in its key markets in the third quarter of 2023. 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 sector. For PVC, although sales volume competition in the third quarter of 2023 continues to be fierce, the launch of new businesses and growth in sales in the Korean market have pushed up PVC profit margins. As for the solution polyurethane and thermoplastic polyurethane business, although it continued to be affected by sluggish demand and the economic situation in South Korea in the third quarter of 2023, stable raw material prices still benefited the business.
Looking forward to the fourth quarter, the market environment is 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 its strategic objectives and fully leverage its extensive industry knowledge, global influence and diversified product portfolio in order to bring 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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