Paper manufacturing company Youngpoong Paper (CEO Jo Sang-jong) announced on the 13th that its sales based on separate financial statements recorded 105.4 billion KRW last year, a decrease of approximately 12.6% compared to the previous year. Operating profit was recorded at 7.8 billion KRW, down 3.6%, while net profit increased by 24.6% to 7.9 billion KRW.
Youngpoong Paper explained that sales declined due to reduced demand for its main product, paperboard, amid domestic and international economic downturns. However, operating profit margin slightly improved from 6.8% last year to 7.5% this year through reductions in selling and administrative expenses. They also added that net profit increased due to other income such as gains from convertible bond valuation.
A company representative stated, “Last year, both domestic and export markets were weak, resulting in decreased sales of major products, including paperboard used for making delivery and packaging boxes, compared to the previous year. However, following a change in major shareholders, we strengthened overall internal capabilities by deploying specialized personnel within the company, which led to an upward trend in operating profit margin compared to the previous year.”
They further explained, “We are preparing to expand additional business areas to quickly respond to volatility in upstream industries and to achieve stable sales growth, so we expect growth momentum to increase in 2023.”
Meanwhile, Youngpoong Paper was acquired by Daeyang Metal in November last year. The company anticipates business synergies arising from similarities in manufacturing processes. Additionally, they are receiving QSS (Quick Six Sigma) consulting, an innovation activity recently promoted by POSCO to support manufacturing innovation in small and medium-sized enterprises, and expect cost reduction and quality improvement effects to appear starting this year.
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