Kolon Reports Operating Profit of 22.7 Billion KRW Last Year, Down 77.9% YoY Due to High Interest Rates and Economic Slowdown

Sales Down 2.1% Year-on-Year
Net Profit Up 740.2%

Kolon announced on the 11th that it recorded consolidated sales of KRW 5.7693 trillion, operating profit of KRW 22.7 billion, and net profit of KRW 129.3 billion last year. Sales and operating profit decreased by KRW 124.9 billion and KRW 8.02 billion respectively compared to the previous year, while net profit increased by KRW 113.9 billion.

Kolon One&Only Tower

The company explained that sales and operating profit declined due to the performance downturn of major subsidiaries caused by high interest rates and a global economic slowdown. Net profit increased as Kolon TissueGene, previously an equity-method affiliate, was incorporated as a subsidiary of Kolon, reflecting the difference between the fair value and book value of Kolon TissueGene’s shares (gain on disposal of investments in associates) in non-operating income and expenses.

Kolon Industries, an equity-method affiliate, saw an increase in sales due to strong performance in the chemical sector despite the global economic recession, but operating profit decreased due to the impact of scheduled maintenance of the aramid production facility. Kolon Industries expects performance improvement this year through aramid pulp expansion and product lineup diversification by securing new customers.

Kolon Global, a subsidiary, pursued diversification of its business portfolio including new starts in industrial construction and non-residential housing, resulting in a slight increase in sales but a decrease in operating profit due to rising construction cost ratios. Kolon Global, which recorded a record-high order intake of KRW 4.2 trillion including KRW 2.3 trillion in non-residential orders last year, plans to improve performance through various business portfolio strategies such as public sector and non-residential orders.

Kolon Mobility Group, a subsidiary, experienced declines in sales and operating profit due to reduced consumer spending and continued slowdown in electric vehicle demand. Kolon Mobility Group plans to implement a strategy focused on enhancing brand management capabilities while expanding new services including used car sales.