SONGWON Industrial Group reports strong sales performance in FY 2017 26th March 2018
SONGWON Industrial Group today reported its financial results for FY2017. In Q4/2017 ended December 31, 2017, sales continued to grow and SONGWON achieved consolidated revenues of 724.9 Billion KRW with a 4.4% increase year-over-year. Although not reaching the same level as the previous year, the results in 2017 were achieved in a far more challenging environment, demonstrating SONGWON’s resilience and ability to continue to deliver a good performance.
For SONGWON, 2017 was a good year with strong sales performance particularly for its businesses: polymer stabilizers, alkylphenols and intermediates. Throughout the year, the company noted increased and solid demand across all regions as was expected by the market and also well in line with SONGWON’s expectations. Throughout 2017, SONGWON’s nine manufacturing facilities operated steadily and at high utilization rates, enabling the company to achieve good results for the year.
SONGWON reported lower margins and net profit in 2017 (compared to FY 2016) due to unfavourable forex developments combined with the resulting pressure on sales prices at the beginning of the year. With raw materials continuing to follow an upward trend, SONGWON responded to this situation by implementing price increases. The company anticipates these increases to have a positive effect on revenues moving forward.
Most importantly in 2017, SONGWON consolidated its competitive position by further strengthening its polymer stabilizers portfolio and also achieving significant successes in the development and expansion of its specialty chemicals, fuel and lubricant antioxidants and TPP product portfolios. Across the board SONGWON’s new businesses are beginning to deliver the expected results. The company feels certain that in the coming year, it will see further growth in these areas.
Looking ahead, SONGWON anticipates ongoing unpredictability of the forex to continue, as well as the increased and volatile levels of political uncertainty and instability in various regions across the world. In this dynamic environment, SONGWON envisages more pressure on its operating margin going forward. Keeping solid contingency plans in place, the company will remain on the look-out for, and cautious of the potential for any negative impacts.
SONGWON will continue to exercise prudent management of its capital and expansion aims and build further on the solid foundation it has laid in recent years. By doing so, the company is confident that it can, and will remain well on track to realise the targets it has set for the coming year.