Ulsan, South Korea – Songwon’s sales fell by more than a fifth in the second quarter of 2023. At KRW269bn ($201m), this represents a 21.4% decline on the KRW343bn achieved in the 2022 quarter. EBITDA roughly halved, from KRW62.9bn last year to KRW31.6bn this.
The company attributed the falls to geopolitical tensions, volatile economic conditions, and the downturn in demand seen in the first quarter continuing into the second.
“Stable raw material prices supported profitability for solution polyurethanes and thermoplastic polyurethanes in Q2 2023,” the company said. “The continuing economic recession negatively affected customers’ operations and stagnant demand in Korea has led to ongoing intense competition.”
It expects weak demand to continue going into the third quarter, but there should be further declines in prices for both raw materials and logistics. “Despite this, the Group is optimistic about the effectiveness of its actions to address market imbalances and the positive impact of new products on future revenues and profitability,” the company said. “Looking to the next six months with caution, the company is confident that it is well-positioned to face emerging challenges and remain a reliable supplier to its customers.”
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