Songwon reports strong growth in Q3, but warns of challenges in Q4
Songwon Industrial Group reported a solid Q3 2024 with 15.3% sales growth year-over-year, despite anticipating economic challenges ahead.
Songwon Industrial Group has published its financial results for Q3 2024, showing strong sales and profit growth across its Industrial and Performance Chemicals divisions. Consolidated sales reached 205.76 million EUR (approx. 285.8 million USD), a 15.3% increase from Q3 2023, while net profit grew by 22.6% to 8.27 million EUR (approx. 11.5 million USD). The company’s gross profit margin for Q3 rose to 17.6%, marking a 2.9-point improvement over the same quarter last year. However, for the year-to-date period, Songwon’s net profit has declined by 10.1% due to rising operating costs and competitive pressures.
| In Millions KRW | Q3 2024 | Q3 2023 | ∆% Q3 | YTD September 2024 | YTD September 2023 | ∆% YTD September |
|---|---|---|---|---|---|---|
| Sales | 285,779 | 247,867 | 15.3% | 815,052 | 784,266 | 3.9% |
| Gross Profit | 50,203 | 36,351 | 38.1% | 134,505 | 121,477 | 10.7% |
| Gross Profit Margin | 17.6% | 14.7% | 16.5% | 15.5% | ||
| Operating Profit | 22,163 | 14,443 | 53.6% | 50,710 | 54,922 | -7.7% |
| EBITDA | 31,608 | 25,005 | 26.6% | 79,617 | 83,582 | -4.7% |
| EBITDA Margin | 11.1% | 10.1% | 9.8% | 10.7% | ||
| EBIT | 21,599 | 15,076 | 43.6% | 49,132 | 53,431 | -8.0% |
| EBIT Margin | 7.6% | 6.1% | 6.0% | 6.8% | ||
| Profit for the Period | 11,492 | 9,372 | 22.6% | 28,729 | 31,954 | -10.1% |
| In Millions USD | Q3 2024 | Q3 2023 | ∆% Q3 | YTD September 2024 | YTD September 2023 | ∆% YTD September |
|---|---|---|---|---|---|---|
| Sales | 193.795 | 168.304 | 15.3% | 544.907 | 524.924 | 3.9% |
| Gross Profit | 34.902 | 25.993 | 38.1% | 90.633 | 81.040 | 10.7% |
| Gross Profit Margin | 17.6% | 14.7% | 16.5% | 15.5% | ||
| Operating Profit | 15.962 | 10.551 | 53.6% | 34.675 | 36.697 | -7.7% |
| EBITDA | 22.570 | 17.573 | 26.6% | 53.996 | 56.887 | -4.7% |
| EBITDA Margin | 11.1% | 10.1% | 9.8% | 10.7% | ||
| EBIT | 14.820 | 10.241 | 43.6% | 33.675 | 35.965 | -8.0% |
| EBIT Margin | 7.6% | 6.1% | 6.0% | 6.8% | ||
| Profit for the Period | 7.803 | 6.172 | 22.6% | 19.206 | 20.694 | -10.1% |
The values in KRW have been converted to USD based on the exchange rate of 1 EUR = 1.06 USD and 1 KRW = 0.00068 EUR.
Division Performance Highlights
The Industrial Chemicals division saw particularly strong growth, with a 15.3% increase in Q3 revenue, attributed to high demand and decreased raw material costs. The division’s Polymer Stabilizers segment performed well, benefiting from supply reliability and increased market share. Fuel and Lubricant Additives also recorded higher revenues, driven by improved logistics and demand. Despite a challenging export environment, Coatings achieved enhanced profitability in Q3.
Performance Chemicals reported a 15.2% revenue increase year-over-year, with Tin Intermediates leading margin improvements due to greater operational efficiency. PVC experienced an uplift in Q3 performance, despite earlier challenges, while Solution and Thermoplastic Polyurethanes faced weaker export sales due to economic factors and seasonal demand shifts in Korea.
Strategic Outlook for Q4
Despite the positive Q3 results, Songwon anticipates continuing challenges in Q4, including global supply and logistics constraints, competitive pressures, and macroeconomic uncertainties. The company plans to focus on cost management and operational efficiency to drive sustainable growth.
