■ Recorded 5,861 billion KRW in revenue and 135.3 billion KRW in operating loss in the 1st Quarter of 2024.
■ Constructed strategic business units and reorganized governance for systemized and strategic executions… For efficiency of cash cow businesses, readjustment of non-core portfolio, and accelerated development of new future businesses.
■ President & CEO Lee Hun Ki participated in the conference call and announced, "We have decided to reorganize LOTTE Chemical’ portfolio to five businesses <Basic chemicals, Advanced materials, Fine chemicals, Battery materials, and Hydrogen energy> for systemized execution of strategies, and for that, we will reestablish strategic directions for each portfolio and optimize governance.”…“We will reorganize the governance to improve the efficiency of operation and manage performance of each unit of strategic business for more effective transformation of portfolio."

LOTTE Chemical announced on the 9th that it recorded revenues of 5,861 billion KRW and an operating loss of 135.3 billion won in the first quarter of 2024 on a consolidated basis, showing improved profitability compared to the previous quarter.

Here are the performance results for the first quarter of 2024: Basic Chemicals (LOTTE Chemical Basic Materials Business, LC Titan, LC USA, LOTTE GS Chemical) recorded revenue of 3,548.9 billion KRW and an operating loss of 130.4 billion KRW. The deficit decreased compared to the previous quarter due to improvements in monomer product spreads, stable ethane prices, and reduced inventory valuation losses. Recovery is expected due to the arrival of the seasonal peak and the easing of supply burdens from regular maintenance seasons in the domestic market.

Advanced Materials recorded revenue of 1,317 billion KRW and operating profit of 44.4 billion KRW. Revenue improved due to increased sales volume from the release of new models by customers. Profitability is expected to improve with increased sales volume driven by increased demand from forward industries.

LOTTE Fine Chemical recorded revenue of 399.4 billion KRW and operating profit of 10.8 billion KRW. Although sales increased due to increased sales of green material industrial products, revenue decreased due to the weak international prices of chlorine-based products. Plans are underway to improve profitability through proactive sales expansion of green-based industrial products and pharmaceutical products.

LOTTE Energy Materials recorded revenue of 241.7 billion KRW and operating profit of 4.3 billion KRW. Quarterly maximum sales and revenue were realized through diversification of customers, leading to an increase in profit margin compared to the previous quarter. Sales growth is expected to continue due to increased sales volume to North America.

During the conference call on the same day, LOTTE Chemical President & CEO Lee Hun Ki participated to provide investors with insights into the company's strategic direction.

President & CEO Lee Hun Ki said, "To systematically execute our strategy, we have reorganized LOTTE Chemical's portfolio into five businesses: Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy. We have also redefined the strategic direction for each portfolio and optimized governance. Through this governance restructuring, we aim to improve efficiency of operation and enhance performance management by focusing on strategic business units, for more effective transformation of portfolio."