SONGWON Industrial Group Posts Solid Financial Results for Second Quarter
ULSAN, South Korea – SONGWON Industrial Group published its audited second-quarter and half-year financial results for the 2021 financial year. Over the quarter, the group achieved consolidated sales of 232,091 million KRW, marking a 17.1% increase in revenue over the same quarter of the previous year. Year-to-date (YTD), the group realized consolidated sales of 454,578 million KRW, representing an 11.2% rise over YTD June 2020 (408,688 million KRW), and recorded a net profit of 24,137 million KRW, delivering a 45.4% increase over the same reporting period in the previous year (YTD June 2020: 16,604 million KRW). In addition, the group’s gross profit margin achieved in the second quarter of 2021 was 22.5% and YTD 22.0%, reflecting an increase of 1.4%-points and 1.6%-points over the prior-year comparable period.
In the second quarter of 2021, Division Industrial Chemicals generated consolidated sales of 175,711 million KRW (Q2/2020: 152,636 million KRW) and for the first six months of the year achieved sales of 339,698 million KRW (YTD June 2020: 315,138 million KRW). When compared to Q2 and the first half-year of 2020, the result marks an increase in revenue of 15.1% and 7.8% respectively. SONGWON achieved the positive result on the back of high worldwide demand and also benefited in in the second quarter of 2021 from competitors’ force majeure events, which generated additional requests from both existing and new customers. Driven by the recovery in the lubricants market, SONGWON registered high demand particularly for its fuel and lubricant additives. As expected, the second quarter of the year was also strong for coatings due to the anticipated seasonality and the confirmation of the overall positive trend in the coatings industry. Following a solid start to the year, SONGWON Industrial Group observed the increase in demand and revenues throughout the first quarter continuing throughout the second quarter of 2021, leading to a robust business performance across its divisions with both achieving increases in revenues and profitability over the prior-year comparable quarter. The overall good result was, in part, supported by the divisions’ timely and imperative price increases, which proved effective in offsetting the rises in raw material costs and the higher freight shipping rates.