LG Chem recorded the highest sales ever, exceeding 30 trillion won in annual sales for the first time last year. Operating profit also increased by three digits compared to the previous year. This is thanks to a significant improvement in the profitability of the battery business. This year’s annual sales are set to increase by 24% to about 37.3 trillion won.
LG Chem announced on the 27th that last year’s sales and operating profit were estimated at KRW 30 trillion and KRW 2,353.2 billion. Sales increased by 9.9% and operating profit by 185.1% compared to the previous year. In particular, annual sales exceeded 30 trillion won for the first time since the company was founded.
In the fourth quarter of last year, sales and operating profit were totaled at 8,855.8 billion won and 6736 billion won, respectively. Sales increased 19.9% year-on-year to record quarterly highs. Operating profit turned to the black compared to the same period last year.
“Even in the crisis of the corona pandemic, sales grew 10% year-on-year, exceeding 30 trillion won for the first time,” said Cha Cha Cha, LG Chem’s chief financial officer. It was a year that produced meaningful results of sales growth and profit growth.”
He added, “In the fourth quarter, there were achievements in further strengthening competitiveness for growth, such as the successful spin-off of the battery business and sustained profitability.”
LG Chem has set its sales target this year to 37.3 trillion won, a 24.1% increase from the previous year. The sales target for each business is ▲Petrochemical 1.4 trillion won ▲Advanced materials 4.4 trillion won ▲Life science 800 billion won ▲LG Energy Solution 18.900 billion won ▲Palm Hannong 700 billion won.
Vice President Cha said, “This year, we will create a company that can take a leap forward by concentrating our capabilities and resources on the four key business areas and new growth engines such as battery materials, sustainable solutions, e-mobility materials, and global new drug development.” Emphasized.
Looking at specific business outlooks and strategic directions by business division, petrochemicals are concerned about supply growth due to the opening of new capacity expansions in Northeast Asia, but the global economy is expected to recover and demand for major industries is expected to improve gradually.
The company said, “We plan to lead the field of eco-friendly solutions such as biodegradable materials and recycled products related to sustainability.” We will also look for opportunities to enter emerging markets, such as the Complex business to secure additional growth base.”
For advanced materials, demand in downstream markets such as batteries, organic light-emitting diodes (OLED), and IT is expected to increase. In addition to securing production capacity for intensive development of high-nickel battery materials, the company will actively promote additional battery materials such as anode binders and heat dissipating adhesives. In line with the trend of lightening and electrifying automobiles, it plans to continuously expand its e-mobility material business, such as engineering materials and automotive display materials.
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The life science division is expected to grow more than 10% in sales this year thanks to the start of supplying UNICEF, such as the new product Ufolio (polio vaccine), and expansion of businesses such as Yves. It will expand investment in R&D to reinforce core competencies in new drug development and build a new drug portfolio with global competitiveness.
In the case of LG Energy Solutions, it is expected that the electric vehicle market will continue to grow and expand the energy storage system (ESS) market centered on large power grids in accordance with the eco-friendly policies of major countries. Sales are expected to grow by more than 50% this year on the back of the launch of new electric vehicle models, increased sales of electric vehicles, and increased overseas orders for ESS. The company plans to strengthen future preparations through e-platform business, development of next-generation batteries, and establishment of cooperative relationships.