Q3 Earnings Surprise for Kolon Plastics

 ▷ Sales grew by 26% year-on-year to KRW 132.5 billion; operating profit grew by 20% to KRW 13.5 billion

 ▷ Cumulative operating profit in Q3 already exceeding last year’s annual operating profit

 ▷ Established sound business basis despite global market deterioration by shifting to large global clients

 Kolon Plastics (CEO Bang, Min-Soo) achieved its highest-ever operating profit supported by the solid POM business. According to Kolon Plastics, consolidated sales and operating profit in Q3 2022 were KRW 132.5 billion and KRW 13.5 billion, respectively.

 Sales and operating profit grew, respectively, by 26% and 20% year-on-year. In particular, operating profit renewed the highest record for two consecutive quarters (KRW 11.5 billion in Q2). Cumulative operating profit as of Q3 was KRW 36 billion, far exceeding the KRW 27.7 billion of the previous year total.

 While the petrochemical sectors are dwindling and the demand for consumer electronics and daily necessities is decreasing following the global economic downturn, Kolon Plastics reshuffled its portfolio to focus on special purposes and increased its business with large global companies to create a stable business basis, which led to the outstanding performance.

 Demand is expected to further shrink due to continued inflation and high interest rates, but Kolon Plastics commented that the company will keep growing as a core material producer that continues innovation by supplying high value-added materials and diverse solutions that can be used in achieving net-zero and producing environmentally friendly vehicles, medical products, and highly functional electric and electronic products.