Kolon Corporation announced its quarterly report on August 16 that it posted 995.6 billion won (US$910.47 million) in sales, 40.8 billion won (US$37.31 million) in operating profits and 15.7 billion won (US$14.36 million) in net profits in the second quarter based on the consolidated IFRS.
Its sales increased 54.9 billion (US$50.21 million) from 940.7 billion won (US$860.27 million) in the second quarter of 2015, while its operating profit went up 17.5 billion won (US$16 million) from 23.3 billion won (US$21.31 million) on-year.
The sales growth boosted by the increase in gain valuation using equity method of accounting of Kolon Industries, a subsidiary accounted in equity method, and the strong sales in the construction and housing division of Kolon Global, a subsidiary of the group.
The company saw the operating profit increase a whopping 75.1 percent year on year due to the rise in gain valuation using equity method of accounting of Kolon Industries and in new orders and profitability of Kolon Global.
With the decrease in gain on appreciation of Kolon Global’s redeemable convertible preferred stocks and the foreign exchange fluctuation caused by Brexit, the net profit was adversely affected by Kolon Global’s temporary losses on the valuation of derivatives. This is the first quarter without risks in the construction division, and other profits and losses are expected to be stabilized in the future.