Kolon Industry Reports Q1 Sales of 1.2292 Trillion KRW and Operating Profit of 28.9 Billion KRW

Film and Electronic Materials Market Slump
Year-on-Year Sales and Operating Profit Decline

Kolon Industries announced on the 9th that its first-quarter results were tentatively recorded at consolidated sales of 1.2292 trillion KRW and operating profit of 28.9 billion KRW.

Compared to the same period last year, sales decreased by 3.8% and operating profit dropped by 55.0%. ▲The global complex economic crisis leading to demand contraction ▲Rising raw material prices due to the Russia-Ukraine war, and other worsening external conditions, along with the sluggish recovery of the film and electronic materials market, were the main factors affecting profitability indicators.

Kolon One&Only Tower. Photo by Kolon

The Industrial Materials division saw sales increase as the easing of the vehicle semiconductor supply shortage led to higher new car sales, supported by the recovery in demand for car seat business of its subsidiary Kolon Glotech. Additionally, the division’s main product, the super fiber aramid, responded to increased demand from electric vehicles and 5G communications with a 'full production and full sales strategy,' underpinning the division’s sales.

The Chemical division recorded relatively favorable results due to increased demand for phenolic resin amid the shipbuilding industry boom cycle and a decline in export freight rates for petroleum resin. The Film and Electronic Materials division continues to operate at a loss due to depressed demand in the IT front-end industry and high raw material prices, but it is showing improvement compared to the previous quarter.

The Fashion division maintained a sales growth trend through timely preemptive responses anticipating various trends and frequent market volatility. In particular, the launch of segmented outdoor strategy products targeting spring outdoor activities drove the division’s sales. Moreover, strategic product sales covering not only menswear but also womenswear and accessories showed steady growth, strengthening brand competitiveness.

A Kolon Industries official stated, "Starting from the first quarter as the low point, gradual performance recovery is expected from the second quarter, which enters the fashion semi-peak season," adding, "In the second quarter of this year, we will make strategic expansion investments across various business divisions to overcome the current crisis and simultaneously focus all efforts on securing future competitiveness."