SONGWON Industrial Group announces Financial Results for Q1/2016

Publishing date: 13.05.2016

SONGWON Industrial Group (www.songwon.com) today reported its audited financial results for Q1/2016. The Group achieved sales of 183,074 Mil. KRW. When compared to sales in Q1/2015 (Mil. KRW 157,045), revenue increased by 16.6%.

• Sales in Q1 totaled 183,074 Mil. KRW
• Gross profit increased over 2015 to 51,185 Mil. KRW
• The gross profit margin is at 28.0%

SONGWON had a promising start to 2016. With business remaining in line with its ambitious expectations, the company saw volumes sold exceeding those sold in Q1/2015. Strong customer demand, raw material and selling price stability, combined with smoothly operating production sites enabled SONGWON to achieve acceptable margin results during the first three months of the year. During Q1/2016, EBITDA and EBIT margins increased to 18.4% and to 13.6% respectively.

Throughout Q1, all of SONGWON’s manufacturing facilities operated at high utilization rates, allowing the company to reliably supply customers according to their orders. SONGWON’s global manufacturing footprint was further expanded in Q1 with the new OPS (One Pack Systems) plant in Abu Dhabi kicking off operations in January. Leveraging both economy of scale and optimizing its production processes, Songwon continued to implement cost position improvements during Q1.

When looking beyond the positive Q1 results, SONGWON remains cautiously optimistic. The company sees no reason to expect a decline in demand, but instead a slow rate of growth. In the coming months, SONGWON will continue to press forward with various initiatives to maintain profitability and support further growth in the current market environment, while keeping accurate price/volume management a priority.