DL Holdings recorded its sales of KRW1.4041 trillion
DATE 2024.05.02
VIEW 355
DL Holdings recorded its sales of KRW1.4041 trillion, and operating profit of KRW172.3 billion in the 1st quarter of 2024, achieving the highest quarterly operating profit after the spin-off.
- Sales increased by 9%, operating profit by 150%, compared to the same period last year
- Strong performance due to the improved profitability of DL Chemical and the effect of DL Energy’s peak season
DL Holdings announced a provisional performance on the 2nd that it expects sales of KRW1.4041 trillion and operating profit of KRW172.3 trillion on a consolidated basis. This represents a year-on-year increase of 9% and 150%, respectively. Especially, the quarterly operating profit is the largest since its spinoff and launch of a holding company in 2021.
Chemical affiliates, including DL Chemical, expanded high value-added products to improve profitability despite the structural crisis in the petrochemical industry. DL Energy, which is in charge of the energy and power generation business, also expanded its eco-friendly power generation business, along with the effect of peak season, and thereby contributed to the improved performance.
Among the major subsidiaries, DL Chemical increased its operating profit by 540%, compared to the same period last year, due to the production and strong sales of POE (polyolefin elastomer), a newly developed cell encapsulant material, amid the solid business conditions of PB (polybutene) which was expanded at the end of last year. DL Chemical’s subsidiaries, Kraton and Cariflex, also contributed to the improved profitability. Kraton successfully turned into a quarterly surplus in just one year, thanks to stabilized price of raw materials and increased sales volume. Cariflex also maintains a high operating profit rate based on its high value-added, eco-friendly synthetic rubber products.
DL Energy’s sales and operating profit grew by 17% and 3%, respectively, compared to the same period last year, as the seasonal effect of increased power usage during winter and the performance of Eco One Energy, a hydrogen fuel cell power plant in Yeosu that commenced operation at the end of last year, were fully reflected. Glad Hotel’s sales and operating profit increased by 13% and 27%, respectively, compared to the same period last year, due to steady demand for hotel from foreigners and corporations.
