LG Chem Breaks 30 Trillion KRW in Sales for the First Time Last Year... Record High Sales

Operating Profit of 2.3532 Trillion KRW Last Year... Up 185.1% YoY
Q4 Operating Profit of 673.6 Billion KRW... Turned to Profit YoY
2021 Sales Target of 37.3 Trillion KRW

[Asia Economy Reporter Hwang Yoon-joo] LG Chem recorded its highest-ever sales last year, reaching 30.0575 trillion KRW.

LG Chem announced on the 27th that its consolidated sales last year amounted to 30.0575 trillion KRW, a 9.9% increase compared to the same period the previous year. This is the largest scale since the company's founding and marks the first time annual sales have surpassed 30 trillion KRW. Operating profit during the same period rose 185.1% to 2.3532 trillion KRW.

Sales in the fourth quarter of last year increased by 19.9% to 8.8858 trillion KRW, and operating profit turned positive to 673.6 billion KRW.

LG Chem CFO (Vice President) Cha Dong-seok explained, "Despite the crisis situation caused by the COVID-19 pandemic, sales grew 10% year-over-year, surpassing 30 trillion KRW for the first time, and EBITDA also reached a record high of 4.6 trillion KRW, creating meaningful results in sales growth and profit increase." He added, "Especially in the fourth quarter, there were achievements in strengthening competitiveness for growth, such as the successful spin-off of the battery business and maintaining a continuous profit trend."

LG Chem has set its sales target for this year at 37.3 trillion KRW, a 24.1% increase from the previous year.

Regarding this year’s business plan, Vice President Cha stated, "We will focus the company’s capabilities and resources on four key business areas and new growth engines: battery materials, sustainable solutions, e-Mobility materials, and global new drug development, to create a company that can take a step further."

Looking at specific business outlooks and strategic directions by division, the petrochemical sector faces concerns over supply increases due to new capacity expansions in the Northeast Asia region, but a global economic recovery and gradual demand improvement in major industries are expected.

LG Chem plans to lead the eco-friendly solutions sector, including biodegradable materials and recycled products related to sustainability, and will actively consider investments to diversify core markets based on manufacturing competitiveness of key products such as ABS, NBL, and POE. The company also plans to explore opportunities to enter emerging markets through complex businesses to secure additional growth foundations.

The advanced materials division anticipates increased demand in front-end markets such as batteries, OLED, and IT. Along with securing production capacity to focus on high-nickel battery materials, LG Chem will actively promote the development of additional battery materials such as anode binders and thermal adhesive agents. Furthermore, in line with trends toward automotive lightweighting and electrification, the company plans to continuously expand its e-Mobility materials business, including engineering materials and automotive display materials.

The life sciences division expects over 10% sales growth this year through the start of UNICEF supply of new products like Upolio (polio vaccine) and expansion of existing businesses such as Evear (filler). It will also increase R&D investment to strengthen core capabilities in new drug development and pursue building a new drug portfolio with global competitiveness.

In energy solutions, with the green policy trends of major countries, continued growth in the electric vehicle market and expansion of the ESS market centered on large power grids are expected. Sales are projected to grow more than 50% this year due to new electric vehicle model launches, increased electric vehicle sales, and increased overseas ESS orders. The company plans to strengthen future readiness through the e-Platform business, next-generation battery development, and establishing cooperative relationships.