SONGWON Industrial Group releases Financial Results for Q3/2015
Publishing date: 13.11.2015
- Sales in Q3 totaled 173,897 Mil. KRW
- Gross profit was 39,898 Mil. KRW
- Gross profit margin at 22.9%
- EBITDA increased by 87.5% over Q3/2014
Ulsan, Korea – November 11, 2016
SONGWON Industrial Group (www.songwon.com) has published
its financial results for Q3. In Q3/2015, gross profit amounted to 39,898 Mil. KRW with sales totaling
173,897 Mil. KRW, an increase of 5.5% over Q3/2014. The gross profit margin rose to 22.9% and the
Group reported an 87.5% increase in EBITDA (without consideration for one time items, 49.8%)
compared to Q3/2014.
| In Million KRW | Q3 | YTD September | ||||
|---|---|---|---|---|---|---|
| 2015 | 2014 | ∆% | 2015 | 2014 | ∆% | |
| Sales | 173,897 | 164,868 | 5.5% | 487,951 | 500,675 | -2.5% |
| Gross profit | 39,898 | 25,944 | 53.8% |
96,796 |
70,197 |
37.9% |
| Gross profit margin | 22.9% | 15.7% | 19.8% | 14.0% | ||
| Operating profit | 15,153 |
5,530 | 174.0% | 31,058 |
6,018 | 416.1% |
| EBITDA | 34,394 | 18,348 | 87.5% | 71,243 | 31,892 | 123.4% |
| EBIT | 25,935 | 9,990 | 159.6% | 45,545 | 7,730 | 489.2% |
| EBIT-margin | 14.9% | 6.1% | 9.3% | 1.5% | ||
| Profit for the period | 12,244 | 2,978 | 311.1% | 18,155 | -8,627 | n/a |
The positive trend set in the first half of 2015 continued in Q3/2015. This was due to lower fuel prices, since early 2015, leading to a higher consumption of fuel and polymers. As a result, demand in the regions remained stable and strong. SONGWON’s sales met expectations and its polymer stabilizers business experienced a robust Q3. However, in North, South and East Asia some volume decreases of non-polymer stabilizer products were experienced due to strong competition.
Currency volatility continued to have an effect on SONGWON’s results in Q3/2015. To offset the Euro
and Japanese Yen’s devaluation against the US Dollar, SONGWON implemented price increases quarter
after quarter in Europe and Japan while accepting some volume losses. However, acceptable margin
levels were re-established in these regions following a partial recovery of the EUR/USD and JPY/USD
exchange rates.
Compared to Q3/2014, raw material costs were significantly weaker in Q3/2015. SONGWON’s production stability throughout Q3 combined with lower raw material prices resulted in a further recovery of the gross profit margin. Both the EBITDA and EBIT also increased in Q3/2015.
While SONGWON will remain attentive to the volatile currency situation, it anticipates that uncertainties in the medium and long term economic growth scenarios, combined with forex and political instability in some regions will lead to a generally volatile outlook. Overall, the company expects demand to remain robust, but the unpredictable and weak growth outlook will continue to make planning difficult.