Kolon Co., Ltd. Reports Q1 Operating Profit of 95.2 Billion KRW, Up 42% Year-on-Year

[Asia Economy Reporter Donghoon Jeong] Kolon Corporation announced on the 16th through its quarterly report disclosure that it recorded consolidated first-quarter sales of 1.312 trillion KRW, operating profit of 95.2 billion KRW, and net profit of 68.2 billion KRW.

Compared to the same period last year, sales increased by 56.9 billion KRW (4.5%), operating profit rose by 28.6 billion KRW (42.9%), and net profit grew by 23.2 billion KRW (51.4%).

Sales grew compared to the same period last year due to an increase in new renewable projects (PJT) in civil engineering, environment, and plant sectors by the subsidiary Kolon Global, as well as increased new car sales of BMW in the distribution division.

Operating profit and net profit also increased as profitability improved due to strong performance by subsidiaries. In the construction sector of Kolon Global, a subsidiary, cost ratio improved due to favorable progress, and profitability improved in the distribution sector due to increased sales of high-end models and reduced discount rates.

The industrial materials division of Kolon Industries, an equity-method affiliate, achieved solid performance with tire cords and aramid serving as cash cows. The fashion division increased the proportion of new product sales through continuous brand restructuring, and sustained growth continues with strong sales of outdoor and golf brands.

The company stated, "Despite uncertain conditions due to external risks, the upward trend of Kolon Industries is expected to continue for the time being based on price increases of core products and continuous growth in the fashion division." It added, "Kolon Global also expects sustained growth based on a stable business portfolio, including a substantial accumulated order backlog in the construction sector (10.3 trillion KRW, more than four times last year's construction sales) and increased vehicle sales in the distribution sector."