SONGWON

SONGWON Industrial Group announces Q3/2024 Financial Results

  • Sales amounted to 285,779 Million KRW, a 15.3% increase compared to Q3/2023
  • Achieved a net profit of 11,492 Million KRW, up 22.6% from Q3/2023
  • Compared to Q3/2023, the gross profit margin increased by 2.9%-points to 17.6%

Ulsan, South Korea – November 13, 2024 – SONGWON Industrial Group (www.songwon.com) today published its Q3 financial results for 2024. During the quarter, SONGWON achieved consolidated sales of 285,779 Million KRW and reported a net profit of 11,492 Million KRW. When compared to the sales (Q3/2023: 247,867 Million KRW) and net profit (Q3/2023: 9,372 Million KRW) recorded in the previous year, this marked an increase of 15.3% and 22.6% respectively. For Q3/2024, SONGWON reported a gross profit margin of 17.6%, an increase of 2.9%-points from Q3/2023 (14.7%).

Year-to-date (YTD), the Group recorded consolidated sales of 815,052 Million KRW, up 3.9% from YTD September 2023 (784,266 Million KRW), alongside a net profit of 28,729 Million KRW, reflecting a 10.1% decrease compared to the same period last year (YTD September 2023: 31,954 Million KRW). In the first 9 months of 2024, the Group reported a gross profit margin of 16.5% reflecting a 1%-point increase over the prior year comparable period.

 

In Million KRW

Q3

YTD September

 
 

2024

2023

∆%

2024

2023

∆%

 
 

Sales

285,779

247,867

15.3%

815,052

784,266

3.9%

 

Gross profit

50,203

36,351

38.1%

134,505

121,477

10.7%

 

Gross profit margin

17.6%

14.7%

 

16.5%

15.5%

 

 

Operating profit

22,163

14,443

53.5%

50,710

54,922

-7.7%

 

EBITDA

31,608

25,005

26.4%

79,617

83,582

-4.7%

 

EBITDA margin

11.1%

10.1%

 

9.8%

10.7%

 

 

EBIT

21,599

15,076

43.3%

49,132

53,431

-8.0%

 

EBIT margin

7.6%

6.1%

 

6.0%

6.8%

 

 

Profit for the period

11,492

9,372

22.6%

28,729

31,954

-10.1%

 

Despite the ongoing challenges in the geopolitical and macroeconomic landscape, SONGWON's Divisions recorded revenue growth in the 3rd quarter of 2024 compared to the 3rd quarter of 2023, driven by the increased demand in specific markets. During Q3/2024, both Division Industrial Chemicals and Division Performance Chemicals reported comparable revenue growth, with increases of 15.3% and 15.2% respectively compared to Q3/2023. Division Industrial Chemicals generated sales of 216,115 Million KRW in Q3/2024 (Q3/2023: 187,386 Million KRW) and YTD September 2024, 615,716 Million KRW (YTD September 2023: 582,107 Million KRW) and Division Performance Chemicals recorded sales of 69,664 Million KRW (Q3/2023: 60,481 Million KRW) and YTD September 2024, 199,336 Million KRW (YTD September 2023: 202,159 Million KRW).

Division Industrial Chemicals reported a strong 3rd quarter of the year, supported by high market demand and improved economic conditions. Amid rising supply availability and lower raw material costs, Polymer Stabilizers performed well in Q3/2024, recording revenue and volume growth. On the back of the organization’s supply reliability, Polymer Stabilizers also further enhanced SONGWON's market share with new business despite the fiercely competitive landscape. Fuel and Lubricant Additives reported higher revenues in Q3/2024 resulting from the rise in demand and improved logistics situation. Amidst the ongoing excess of supply in the market, Coatings recorded robust sales and enhanced profitability for Q3/2024.

In the face of rising logistics and manufacturing costs and intensive price competition in the market that negatively impacted export sales, Division Performance Chemicals performed well in Q3/2024. Despite low volumes due to sluggish market demand, Tin Intermediates reported a rise in sales, which, along with improved operational efficiency, led to better margins. High freight and manufacturing costs, compounded by aggressive competitive pricing in SEA/SA and MEA, impacted PVC's revenue and volume in the 3rd quarter, but performance improved compared to the previous quarters in 2024. Although stable raw material prices positively impacted profitability, Q3/2024 was challenging for Solution Polyurethanes and Thermoplastic Polyurethanes (TPU/SPU). It recorded a drop in volume primarily resulting from weak TPU export sales due to the economic recession and seasonal fall in demand in Korea.

Looking ahead to Q4/2024, SONGWON sees global supply and logistics challenges continuing, with market prices and margins remaining under pressure. Considering the possibility of a potential slowdown caused by global macroeconomic uncertainty, shifting industry dynamics and customers struggling to provide clear forecasts, it is difficult to accurately predict what Q4/2024 will bring. However, SONGWON will continue prioritizing effective cost management and optimizing its operational efficiency while remaining focused on achieving sustainable and profitable growth by executing its strategic initiatives and fostering long-term value creation.

The Q3/2024 Financial Statements can be downloaded at: www.songwon.com/investors/reports-publications

Reader enquiries

Songwon Industrial Co., Ltd.
Walzmühlestrasse 48
8500 Frauenfeld
Switzerland

+41 52 635 0000

marketing@​songwon.com

www.songwon.com


Notes for editors

About Songwon Industrial Co., Ltd.

A leader in the development, production and supply of specialty chemicals, SONGWON’s products touch your life every day, everywhere. Since 1965, we’ve been driving innovation, partnering for progress and paving the way for a better more sustainable tomorrow with 360° customized solutions.

Headquartered in South Korea, SONGWON is one of the world’s leading manufacturers of polymer stabilizers. With Group companies and world-class manufacturing facilities across the globe, we are dedicated to providing customers in over 60 countries with high-performance products that meet their individual needs and the best levels of service.

For further information, please go to: www.songwon.com.

Editorial enquiries

Marcel Romer
Corporate Communications Manager
Songwon Industrial Co., Ltd.

+41 52 635 0000

marketing@​songwon.com

Adriana Pagels
Marketing Solutions NV

+32 33 13 03 11

apagels@​marketing-solutions.com

 

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