LG

■ Q1 Consolidated Performance (Including LG Energy Solution)
 □ Revenue: KRW 12.1710 trillion (4.8% increase YoY)
 □ Operating Profit: KRW 447.0 billion (68.9% increase YoY)
 
■ CFO Dong Seok Cha
 “We achieved improved performance compared to the previous quarter, driven by a reduced deficit in the Petrochemicals business and increased sales of high-value-added products in electronic and engineering materials.”
 “We will continue to focus on enhancing operational efficiency across the organization, including portfolio restructuring toward high-growth, high-profit businesses, in order to maintain solid mid-to-long-term growth momentum.”
 
 
LG Chem announced on the 30th that it recorded consolidated revenue of KRW 12.1710 trillion and operating profit of KRW 447.0 billion for the first quarter of this year.
 
Compared to the same period last year, revenue increased by 4.8% and operating profit by 68.9%. On a quarter-over-quarter basis, revenue decreased by 1.3%, while operating profit turned to a profit.
 
CFO Dong Seok Cha commented, “We achieved improved performance compared to the previous quarter, driven by a reduced deficit in the Petrochemicals business and increased sales of high-value-added products in electronic and engineering materials,” adding that, “We will continue to focus on enhancing operational efficiency across the organization, including portfolio restructuring centered on high-growth, high-profit businesses, in order to maintain solid mid-to-long-term growth momentum.”
 
Reviewing Detailed Q1 Performance and Q2 Outlook by Business Division:
 
The Petrochemicals Company posted a revenue of KRW 4.7815 trillion and an operating loss of KRW 56.5 billion. Although profitability was negatively impacted by an operational shutdown caused by a power outage at the Daesan plant and rising domestic electricity rates, the operating loss was reduced from the previous quarter due to cost-saving efforts and the favorable impact of a strong Korean won.
 
In Q2, profitability is expected to improve, supported by increased shipment volumes during the seasonal peak and anticipated declines in raw material prices.
 
The Advanced Materials Company recorded a revenue of KRW 1.4898 trillion and an operating profit of KRW 127.0 billion. Solid revenue and profit recovery were achieved, driven by increased sales of high-value-added products in both electronic and engineering materials.
 
In Q2, shipments of battery materials are expected to decline due to weakened demand in downstream markets affected by policy changes such as U.S. tariff adjustments.
 
The Life Sciences Company posted a revenue of KRW 285.6 billion and an operating loss of KRW 13.4 billion. Revenue declined compared to the previous quarter due to timing differences in overseas shipments of key products such as autoimmune treatments and vaccines, which also led to a decline in profitability.
 
In Q2, solid sales of key products are expected to continue, alongside sustained R&D investment in global clinical programs.
 
The subsidiary LG Energy Solution reported a revenue of KRW 6.265 trillion and an operating profit of KRW 374.7 billion. While revenue slightly declined due to the continued conservative inventory policies of customers, the company turned to a profit in operating income thanks to cost-saving efforts and the removal of one-off expenses that had been reflected in the previous quarter.
 
In Q2, demand uncertainty is expected to persist in downstream markets due to external factors such as U.S. trade policy changes and the continuation of conservative inventory strategies by major automakers.
 
The subsidiary Farm Hannong recorded a revenue of KRW 246.1 billion and an operating profit of KRW 30.9 billion. Despite exiting the fertilizer chemical business, the company achieved year-on-year comparable revenue and profitability through increased sales of crop protection products and seeds.
 
In Q2, domestic market contraction is anticipated due to the impact of large-scale wildfires, but profitability is expected to improve through expanded sales of crop protection products.