LOTTE Chemical Titan Holding Berhad reported its third quarter financial results with group revenue amounted to RM1.96 billion compared to RM2.37 billion in the same quarter last year, representing a decrease of 17% year-on-year (YoY). The decline it said was largely due to lower average product selling price.
However, the Group registered a gross profit and earnings before interest, taxation, depreciation and amortisation (EBITDA) of RM22.26 million and RM98.76 million, respectively. Correspondingly, the Group’s net loss for 3Q FY2023 narrowed by 84% YoY to RM56.16 million.
The improved performance was mainly driven by the reversal of inventory write-down in 3Q FY2023 and improved margin spreads resulting from lower feedstock costs. Comparing 3Q FY2023 with 2Q FY2023, the Group’s revenue increased by 6% due to the increase in sales volume. Net loss of the Group narrowed by 83% quarter-on-quarter (QoQ) attributable to the
reversal of inventory write-down and lower feedstock costs.
In the nine months period ended 30 September 2023 (9M FY2023), the Group’s revenue and net loss eased to RM5.79 billion and RM615.43 million mainly due to weakened margin spreads, higher cost of operation and share of losses from associate company, LOTTE Chemical USA Corporation, partially offset by the reversal of inventory write-down.
President and CEO, Mr Park Hyun Chul commented, “Despite the bottom-line improvement in the Group’s 3Q FY2023 financial performance, the business environment remains challenging, weighed down by slower economic growth in major economies and the new tension in the Middle East. The Management is vigilantly monitoring the geopolitical situation and the aggregate supply and consumption dynamics to navigate the Group through this volatile environment. We will continue
implementing our optimisation plan by balancing the Group’s production outputs and economic efficiencies, enhancing our product quality while upholding our disciplined approach to managing costs and financial liquidity
