Lotte Fine Chemical significantly boosted its operating profit and net profit in the second quarter of this year, driven by expanded sales. The profit growth rate far exceeded the sales growth rate, demonstrating both business expansion and improved profitability simultaneously.

According to the electronic disclosure system on the 30th, Lotte Fine Chemical's preliminary consolidated operating profit for the second quarter of this year was tallied at KRW 61.9 billion. This represents a 611.5% increase from KRW 8.7 billion in the same period last year, and an 89.3% rise compared to the previous quarter (KRW 32.7 billion). The quarterly operating profit nearly doubled in just one quarter, indicating an accelerating pace of profit improvement.

During the same period, sales revenue reached KRW 586.3 billion, up 38.1% from KRW 424.7 billion in the same period last year and up 14.8% from the previous quarter (KRW 510.7 billion). The operating profit increase was much larger than the sales growth, leading to a significant improvement in profitability. The second-quarter operating margin was approximately 10.6%, exceeding both the approximately 2.0% recorded in the same period last year and the approximately 6.4% from the previous quarter.

Profit before income tax from continuing operations stood at KRW 115 billion, up 528.4% from KRW 18.3 billion in the same period last year and up 107.6% from the previous quarter (KRW 55.4 billion). Net profit was KRW 94.2 billion, increasing 507.7% compared to the same period last year (KRW 15.5 billion) and 110.7% compared to the first quarter (KRW 44.7 billion). Net profit attributable to owners of the parent company was also KRW 94.2 billion, recording the same growth rates.

The improvement trend was also evident in the cumulative performance for the first half of the year. Cumulative sales for the first half of this year amounted to KRW 1.0969 trillion, up 26.0% from KRW 870.3 billion in the same period last year. Cumulative operating profit was KRW 94.6 billion, a 244.0% increase from KRW 27.5 billion in the same period a year ago, with the cumulative operating margin reaching approximately 8.6%, more than 5 percentage points higher than the approximately 3.2% recorded in the same period last year. The cumulative profit before income tax from continuing operations was KRW 170.4 billion (up 226.4% year-on-year), and the cumulative net profit was KRW 138.9 billion (up 216.4% year-on-year).

These figures are preliminary results that have not yet been audited by an external auditor. Lotte Fine Chemical stated that some details may change during the future accounting audit process, and the earnings report will be posted on the company's website.

Going forward, the key points to watch are whether the double-digit operating margin achieved in the second quarter can be sustained in the second half of the year, and whether the sales growth trend will continue.

[This article was written with the assistance of AI.]