operating profit of 39.9 billion KRW, profit before tax of 102.7 billion KRW, and a net income of 82.6 billion KRW in 2020.(consolidated financial statements)
Despite the tough business environment due to COVID-19, the company has achieved solid operating profit as well as
the highest net income since its foundation by selling TSK Corporation’s shares. Sales dropped by 10.6% compared to
2019, but the overall operating profit increased by 719%, and net income by 82.9 billion.
The decline of sales may have been directly affected by the sharp drop in raw material prices in the first half of last year, as well as the decreased capacity utilization of major exporting countries, such as Europe and the United States, due to the impact of COVID-19. However, Huvis recovered its profitability as the material prices once again became stable and sales of sanitary products rapidly increased.Moreover, strong sales of LMF (low melting fiber, industrial fiber), a major cash cow for the company, also contributed to improved performance, and the profit before tax also increased significantly due to the selling of all shares of the total environmental services company TSK Corporation (16.52%, 158,000 shares) at the end of last year.
“We sold the shares to improve our financial structure, expand business and make new investments for the SHE product line*, our future foods, and the proceeds will be used in new business investments and M&As,” said a Huvis official. “We will also start operating the production line for the sanitary products that we are currently extending in the first half-year and increase sales of environment-friendly materials, such as biodegradable and recycled fibers, thereby accelerating improvements in profitability.”
Huvis relocated its Ulsan Plant to Jeonju Plant last year and integrated the two worksites, leading to better synergy this year. In addition, the LMF joint venture (Huvis Indorama Advanced Materials) in the United States is about to start operating its plant in the first half of this year as well.
*SHE product line: SHE is Huvis’ differentiated product line that stands for safety, health, and environment.