Solum Achieves Record High Sales Last Year... Operating Profit Turnaround Expected

[Asia Economy Reporter Park Jihwan] SoluM is expected to achieve a turnaround in operating profit while recording its highest sales since its founding.

On the 14th, SoluM announced that it recorded sales of 1.1467 trillion KRW and an operating profit of 26.6 billion KRW last year. Sales increased by 7% compared to the same period last year, achieving the highest performance ever. Operating profit decreased by 53%.

The decrease in operating profit despite top-line growth was due to one-time expenses incurred during the process of increasing the operating rate of the newly established Mexico factory. The impact of increased direct and indirect logistics costs caused by the logistics crisis and rising raw material prices due to semiconductor supply instability was also reflected.

A company official said, "Although the workforce at the Mexico factory, which had increased to 1,200 people, was reduced to the 500-level, more than half, through factory efficiency improvements, the same volume as before is being produced. With the normalization of the Mexico and India factories, a supply system by four regional zones has been completed, resolving uncertainties related to logistics." He emphasized, "We have completed the advance securing of key semiconductor materials and introduced new models to reflect cost increases in sales prices, so we are confident in improving performance this year."

SoluM expects to expand power product supply to global IT companies this year, and the ESL business division is also steadily growing, anticipating sales increased by more than 250 billion KRW compared to the previous year and a double-digit operating profit margin. In new businesses such as servers, lighting, healthcare, and batteries, which have been promoted as new ventures, sales growth of 100 billion KRW and an operating profit margin of 15% are forecasted this year.

Song Sangho, Head of Management Support at SoluM, said, "The start of this year is good, achieving monthly sales exceeding 130 billion KRW, the highest since the company's founding in January." He added, "We expect significant improvements in sales and operating profit this year as well."