SONGWON Industrial Group announces Q1 2025 Financial Results

Publishing date: 13.05.2025

SONGWON Industrial Group today released its financial results for the 1^st quarter of 2025. The Group reported an increase in revenue of 7.8% in Q1/2025 (275,753 Million KRW) compared to sales generated in Q1/2024 (255,752 Million KRW). In the first 3 months of 2025, SONGWON delivered a gross profit of 40,743 Million KRW, marking an increase of 4.1% when compared to the gross profit achieved in the same period of the previous year (Q1/2024: 39,134 Million KRW). Net profit in Q1/2025 was 4,857 Million KRW, down from 6,662 million KRW in Q1/2024, primarily due to elevated labor costs following a recent court ruling in Korea that impacted companies operating in the country, as well as ongoing margin pressure.

SONGWON started the year strongly, despite ongoing macroeconomic challenges and global uncertainties, including trade tensions carried over from 2024 that continued to influence the business environment. Supported by solid demand throughout Q1/2025, Division Industrial Chemicals reported consolidated sales of 208,133 Million KRW, reflecting an 8.0% increase compared to the first 3 months of the previous year (Q1/2024: 192,785 Million KRW). In Q1/2025, Division Performance Chemicals also delivered higher consolidated sales of 67,620 Million KRW, representing a 7.4% rise from Q1/2024 (62,967 Million KRW).

Q1/2025 was a strong quarter for Division Industrial Chemicals, driven by robust demand and partly due to the easing of shipping lane congestion compared to the previous period. Despite the highly competitive environment, Polymer Stabilizers outperformed Q4/2024, with strong demand positively impacting revenues in the first quarter, as well as the expansion of SONGWON's market share with new business. Fuel and Lubricant Additives saw higher revenues in Q1/2025 compared to Q4/2024, driven by strong demand and improved logistics lead times and availability. After a seasonally weak Q4/2024, Coatings delivered a solid performance in Q1/2025, with both revenues and volumes up amid ongoing market oversupply and intense price pressure.

As expected, Division Performance Chemicals saw slow demand in Q1/2025 due to the Chinese New Year and regional pressures, but showed resilience and recorded a good result. Tin Intermediates recorded lower volume and revenue compared to Q4/2024 but showed year-on-year improvement as Q1/2025 progressed. Stronger sales revenue, improved margins and market share growth were driven by higher tin ingot prices, favorable foreign exchange rates and new business. Throughout Q1/2025, PVC was affected by Korea’s sluggish construction market, weak demand and aggressive pricing, but noted a slight improvement toward the end of the quarter with business recovery in Korea and new opportunities emerging in other regions. For Thermoplastic Polyurethanes and Solution Polyurethanes (TPU/SPU), Q1/2025 proved challenging, with weaker demand across industries due to the holiday period in Asia, domestic economic slowdown and foreign exchange pressures.

Looking ahead, SONGWON expects market conditions to remain challenging in 2025, with ongoing intense pricing competition, oversupply and economic uncertainty. While demand is still expected to align with industry forecasts, changing global regulations, potential new trade tariffs and volatile order patterns may further disrupt market dynamics. Despite these headwinds, SONGWON is committed to meeting customer needs, adapting its operations and enhancing competitiveness through effective cost management and operational efficiency, while remaining focused on driving long-term growth and creating sustainable value.