SONGWON Industrial Group Posts Solid First Quarter
ULSAN, South Korea – SONGWON Industrial Group released its audited financial results for the first quarter of 2020, which ended March 31, 2020. After a challenging finish to 2019, SONGWON experienced a solid start to the new year with sound growth and increased revenue. In the first quarter of 2020, the group achieved consolidated sales of 210,543 million KRW and reported a 27.4% increase in net profit (11,182 million KRW) in the first quarter 2020 over the first quarter of 2019. Compared to the first quarter of 2019, the gross profit margin in the first quarter of 2020 decreased slightly from 20.9% to 19.7%. However, both the EBITDA and EBIT margins increased respectively in the first quarter to 12.8% and 8.8%.
Compared to the same reporting period in 2019, the group’s Industrial Chemicals (+10.7%) and Performance Chemicals (+10.1%) divisions both recorded higher sales in the first quarter of 2020. This was mainly caused by customers increasing their stocking-up activities beyond the usual seasonal inventory buildup due to concern for potential supply disruptions caused by the COVID-19 pandemic. During the first quarter of 2020, the group benefitted from the increased demand particularly in its key business, Polymer Stabilizers.