Daeyang Metal, Q2 Sales Reach 78.1 Billion KRW... 10.38% Growth YoY

Stainless steel cold-rolled sheet manufacturer Daeyang Metal (CEO Jo Sang-jong) announced its 2023 half-year performance through a public disclosure on the 14th.

Based on consolidated financial statements, Daeyang Metal recorded sales of 149.1 billion KRW in the first half, a 6.7% increase compared to the previous year, while operating loss and net loss were 900 million KRW and 13.8 billion KRW, respectively.

For the second quarter, sales reached 78.1 billion KRW, operating profit was 1.4 billion KRW, and net loss was 8.6 billion KRW. Sales surged by 10.38% compared to the same period last year. Compared to the first quarter of this year, sales increased by 10.13%, and operating profit turned positive, showing visible performance improvement.

Daeyang Metal explained that the sales increase this quarter is expected to continue into the second half, and the net loss is due to non-operating expenses such as convertible bond valuation losses and fees related to bond redemption. Regarding sales, the company has maintained continuous growth in high value-added product lines since last year, and plans to further solidify this trend through strengthening the product portfolio and increasing production at the new Gimhae factory.

Since acquiring its subsidiary Youngpoong Paper last year and additionally acquiring Youngpoong Package in the first half of this year, Daeyang Metal has been solidifying its foundation for successful business diversification. Although temporary costs occurred in the first half due to investments for repairing aging existing facilities and equipment of its subsidiaries, the company explained that these are planned investments for mid- to long-term growth. With the introduction of efficient systems, profitability is expected to gain momentum starting from the second half of this year.

A Daeyang Metal representative stated, “In the second half, we are steadily carrying out plans not only for quantitative growth but also for qualitative improvement. We expect to see effects from measures to secure financial soundness and reduce financial costs in the second half, and we plan to implement various win-win growth strategies among affiliates.”