SKC recorded a surplus in all businesses despite the spread of Corona 19 last year, and its operating profit increased by more than double digits. This year, the goal is to become an eco-friendly company by making it the first year of ESG management.
SKC announced on the 9th that last year’s sales and operating profit were estimated at KRW 2.7 trillion and KRW 190.8 billion. Annual sales and operating profit increased 14.5% and 36.5% YoY, respectively.
In particular, it is noteworthy that all business divisions recorded surpluses.
SK Nexilis, an investor in the manufacture of copper foil for electric vehicle batteries, recorded sales of 371 billion won and operating profit of 52.9 billion won last year despite the fall in utilization rate due to the strike and the aftermath of the corona spread at the beginning of the year. This is the result of early operation of the 4th plant and expansion of the European and Chinese markets. Ahead of the commercial operation of the 5th factory this year, the company is maintaining a full operation system.
SK PIC Global, a global joint venture in the chemical business, achieved sales of 699.1 billion won and operating profit of 88.2 billion won last year. Although sales and operating profit declined slightly due to the effect of regular maintenance in 4Q, the operating profit grew significantly thanks to strong sales of PO and PG. As the demand for PO and PG is expected to increase this year, the company plans to continuously increase the number of customers with high value-added products focusing on personal hygiene.
The Industry Materials Business Division recorded 9929 billion won in sales and 63.1 billion won in operating profit last year. Compared to the previous year, sales increased slightly, but operating profit doubled. It is evaluated that the proportion of high-quality differentiated products such as flexible organic light-emitting diode (OLED) protective film has increased and the earnings of overseas subsidiaries have improved. This year, it plans to continue its growth by expanding technology-oriented high-tech IT and eco-friendly businesses.
The semiconductor material division succeeded in turning to the black with sales of KRW 395.3 billion and operating profit of KRW 17.4 billion. Earnings improved as sales of high value-added products such as ceramic parts and CMP pads increased. In line with this year’s memory and foundry supercycle trend, better performance is expected. Profit margin improvement is also expected to accelerate due to the full-scale commercialization of the CMP pad Cheonan plant.
It is evaluated that the company has constantly innovated its business model over the past year. In January, it entered the copper foil business for secondary batteries and transformed into a secondary battery material company, and in February, it spun off the chemical business to lay the foundation for global growth. It also sold shares of SKC Kolon PI and SK Bioland, which are not showing high synergy in BM innovation. In December, SKC Solmics was incorporated as a wholly owned subsidiary, and semiconductor-related businesses were integrated to prepare a foothold to accelerate growth.
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This year, it has set a goal of achieving operating profits of 250 to 300 billion won. In particular, it is a strategy to make this year the first year of ESG management. First of all, we will clarify our corporate identity (CI) to have a presence as a secondary battery material company, expand our business portfolio and accelerate the creation of results. It will also set up a detailed plan to implement the RE100 campaign, which was the first in Korea to join, and rapidly promote the eco-friendly pyrolysis oil business for waste plastics. It also enhances the ability to execute financial stories by strengthening communication with customers, investors, and markets.
On the other hand, on this day, SKC confirmed its dividend per share at KRW 1,000, the same as the previous year. An official from SKC said, “In order to maintain an active shareholder return policy despite the difficult external environment, the dividend was set the same as in the previous year.”