LX Hausys’ 2023 OP returns to above $75 mn for first time in six years

TISE 2024 [Courtesy of LX Hausys]

LX Hausys Ltd., a manufacturer of building materials in South Korea, has managed to post more than 100 billion won ($75.1 million) in annual operating profit for the first time in six years in 2023.

LX Hausys disclosed Monday that its operating profit reached 109.8 billion won in 2023, up 635.1 percent from a year ago, on sales of 3.53 trillion won, down 2.4 percent.

LX Hausys’ operating profit had plummeted from 133 billion won in 2017 to 68.8 billion won in 2019 and 14.9 billion won in 2022 amid a downturn in the real estate and construction markets.

The improved performance is attributed to the decline in the prices of polyvinyl chloride (PVC), a raw material for major products including windows, flooring materials, and synthetic marble.

According to the company, the price of PVC fell 27.7 percent to 1,176 won per kilogram in the third quarter of 2023 from 1,627 won in 2022.

The company also actively targeted overseas markets with high-value-added products amid the stagnant domestic market.

In 2023, LX Hausys opened the Viatera Showroom, a specialized showroom for engineered stone, in Long Island, New York, the United States, and established a sales corporation in Mexico.

By expanding overseas bases and participating more in global exhibitions, the company focused on discovering new clients.

LX Hausys’ U.S. subsidiary posted a cumulative sales of 396 billion won and a net profit of 14 billion won in the first three quarters of 2023.