Lotte Fine Chemical announced on the 28th that its operating profit for the first quarter reached 42 billion KRW, down 4.8% compared to the previous quarter. This was due to an overall decline in the selling prices of major products in the Chemical Business Division.
During the same period, sales increased by 5.7% from the previous quarter to 525 billion KRW, driven by expanded sales of high value-added products in the Green Materials Business Division.
By division, sales in the Chemical Business Division rose 2.9% from the previous quarter to 392.8 billion KRW. Although international prices and selling prices of ammonia-based and chlorine-based products declined due to falling natural gas and energy prices, sales volume increased compared to the previous quarter, which was affected by scheduled maintenance.
Sales in the Green Materials Business Division increased 15.3% from the previous quarter to 132.2 billion KRW. This was due to rising selling prices amid strong demand in the downstream market and the full-scale sales of expanded production volume from the cellulose-based food and pharmaceutical production line completed in the first half of last year.
In February, Lotte Fine Chemical decided to invest 39 billion KRW to further expand the food and pharmaceutical production line, aiming for completion by the first half of 2025. The company plans to secure a favorable position in the rapidly growing markets for plant-based pharmaceutical capsules and alternative meat materials, driven by changing consumer trends that emphasize health and the environment.
A Lotte Fine Chemical official stated, "Profitability improvement due to the proactive expansion of the cellulose-based line was remarkable, offsetting the impact of price declines in ammonia and chlorine-based products. Through additional expansion of the cellulose food and pharmaceutical production line, we will secure a favorable position in high value-added application markets with strong growth potential, such as plant-based capsules and alternative meat."
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