Lotte Fine Chemical Reports Q3 Operating Profit of 10.3 Billion KRW, Down 40% QoQ

"Expecting Improved Performance of Yeomso and Cellulose in Q4"

Lotte Fine Chemical announced on the 31st that its operating profit for the third quarter recorded 10.3 billion KRW, a 39.8% decrease compared to the previous quarter. Sales amounted to 420.4 billion KRW, slightly down from 422.1 billion KRW in the previous quarter.

Lotte Fine Chemical explained, "In the fourth quarter, performance improvement is expected due to the structural international price increase of chlorine-based products and increased sales volume of cellulose-based food and pharmaceutical products."

Lotte Fine Chemical is promoting the strengthening of a high-value-added portfolio, including specialty products and clean energy raw materials, to enhance growth potential and profitability.

Through a long-term distribution contract with Colorcon, the world's number one distributor of pharmaceutical cellulose based in the United States, the company secured a foothold for selling the expanded volume from the food and pharmaceutical cellulose plant scheduled to be completed next year. The goal is to become the global number one in market share in the rapidly growing pharmaceutical cellulose market.

Pharmaceutical cellulose materials are plant-based pharmaceutical capsule and tablet (pill) coating materials made from wood as raw material. Recently, due to increased interest in health, they are growing by replacing existing animal-based materials such as gelatin.

Also, when the results of the clean hydrogen power generation bidding promoted by the government through the Korea Power Exchange in the fourth quarter are announced, the volume of clean ammonia to be supplied by Lotte Fine Chemical is expected to be confirmed. Based on the largest ammonia distribution infrastructure in Asia, Lotte Fine Chemical is striving to become Asia’s clean ammonia hub.

Kim Yong-seok, CEO of Lotte Fine Chemical, said, "We maintained steady sales in the third quarter and established a foundation for expanding pharmaceutical cellulose sales through distribution contracts with Colorcon." He added, "In the fourth quarter, we expect to confirm concrete results of strengthening our high-value-added portfolio, including overall performance improvement and the announcement of clean ammonia bidding results."