Specializing in chemical materials, Huvis (CEO Shin, You Dong, 079980) officially announced on the 15th that it had posted sales of KRW 225.4 billion, operating profit of KRW 6.2 billion, and net profit of KRW 3.6 billion in the first quarter of 2020. (Consolidated financial statements)

Based on the company’s consolidated financial statements, sales dropped by 20%, but operating profit increased by 114% and net profit by 226% compared to the same quarter in the previous year (Q1 2019). Compared to the previous quarter (Q4 2019), sales decreased by 1.9% while operating profit and net profit made a successful turnaround.

Sales dropped compared to the first quarter of 2019 due to the decreased costs of raw materials, but as the first phase of the integration of the Ulsan-Jeonju Plant is completed, there have been partial synergy effects such as reduced fixed costs and utilities as well as increased progress. Moreover, despite the decreased global demands due to COVID-19, the first-quarter operating profit has increased compared to the previous year due to increased demand for healthcare materials such as sanitary materials, masks and protective clothing.

“We’re expecting uncertainties due to COVID-19 and the oil price collapse, but we will strive to secure profitability in the second quarter based on performance recovery of Sichuan Huvis in China as well as a steady demand for sanitary and healthcare materials,” said a Huvis official.