LG

■ Q2 Consolidated Performance (Including LG Energy Solution)
 □ Revenue: KRW 12.2997 trillion (14.2% decrease YoY)
 □ Operating Profit: KRW 405.9 billion (34.3% decrease YoY)
 
■ CFO Dong Seok Cha
 “We achieved improved performance compared to the previous quarter through a turnaround in petrochemicals, increased shipments of battery materials, and licensing out a rare obesity treatment.”
 “We will strive to elevate the company further by making investments to enhance the fundamental competitiveness of our three new growth engines and optimizing our operations.”
 
 
LG Chem reported its consolidated financial results for the second quarter on the 25th, recording a revenue of KRW 12.2997 trillion and an operating profit of KRW 405.9 billion.
 
Compared to the same period last year, revenue decreased by 14.2% and operating profit by 34.3%. However, compared to the previous quarter, revenue increased by 5.9% and operating profit by 53.4%, respectively.
 
CFO Dong Seok Cha commented, “We achieved improved performance compared to the previous quarter through a turnaround in petrochemicals, increased shipments of battery materials, and the licensing out of a rare obesity treatment.” He added, “We will strive to elevate the company further by making investments to enhance the fundamental competitiveness of our three new growth engines and optimizing our operations.”
 
Reviewing Detailed Q2 Performance and Q3 Outlook by Business Division:
 
The Petrochemicals Company recorded a revenue of KRW 4.9658 trillion and an operating profit of KRW 32.3 billion. Despite the strong raw material prices, the division turned profitable due to increased sales of key products driven by the seasonal peak in downstream markets such as home appliances.
 
In Q3, while a gradual recovery in supply-demand balance is expected, the improvement in profitability is anticipated to be limited due to delayed global demand recovery and rising freight costs.
 
The Advanced Materials Company recorded a revenue of KRW 1.7281 trillion and an operating profit of KRW 169.9 billion. Despite concerns over the slowdown in the electric vehicle market, revenue and profitability improved due to increased shipments of cathode materials. The profitability of electronic and engineering materials also improved due to a higher proportion of high-value-added products.
 
Although a decrease in cathode material shipments is expected in Q3 due to weak downstream demand, profitability is forecasted to improve due to the stabilization of metal prices.
 
The Life Sciences Company recorded a revenue of KRW 404.4 billion and an operating profit of KRW 109 billion. Revenue and profitability temporarily increased due to the growth of key products such as diabetes and vaccines, as well as the licensing out of a rare obesity treatment.
 
While key product sales are expected to remain strong in Q3, profitability is anticipated to decline due to increased R&D expenses associated with global clinical projects.
 
LG Energy Solution recorded a revenue of KRW 6.1619 trillion and an operating profit of KRW 195.3 billion. Despite the impact on prices due to falling metal prices, revenue and AMPC (Advanced Manufacturing Production Credit) increased due to the launch of new electric vehicles by North American customers.
 
In Q3, revenue is expected to decrease compared to initial forecasts due to the slowdown in electric vehicle growth rates and continued weakness in metal prices. The company plans to enhance operational efficiency by managing production speed and utilization rates based on market demand.
 
Farm Hannong recorded a revenue of KRW 238.5 billion and an operating profit of KRW 19.5 billion. Although overseas sales of crop protection agents continued to expand, profitability decreased compared to the same period last year due to falling fertilizer prices.
 
In the second half of the year, while seasonal effects and increased future R&D expenses are expected to reduce revenue, annual profitability is projected to remain at last year's level, driven by the expansion of overseas sales of crop protection agents.