Hankook & Company announces 2022 Q1 financial results
- Global sales increased 7.5% QoQ and 14% YoY to KRW 269.7 billion
- Operating profit showed continued recovery with 26.1% increase QoQ to KRW 44.0 billion, but short 35.0% YoY
- Battery brand AtlasBX showed strong sales performance in Q1
Hankook & Company Co., Ltd., the holding company of Hankook Tire & Technology Co., Ltd., announced its 2022 Q1 financial results with consolidated global sales of KRW 269.7 billion and an operating profit of KRW 44.0 billion. Business remained strong with sales increasing 14% compared to the same period last year. The group’s operating profit also picking up momentum with 26.1% increase since Q4 2021, though the figure is still short 35.0% YoY as Hankook Tire continues to recover from last year’s business conditions.
In the first quarter of 2022, Hankook & Company saw strong performance from AtlasBX, as the pricing strategy for the group’s battery brand was proved to be highly effective in driving demand for its battery products. However, cost increase of lead, the main raw materials for lead-acid batteries, and increase in ocean freight rates due to global economic situations were key factors affecting AtlaxBX’s operating profit. Lingering effects of the ongoing global supply chain disruptions, rising raw material prices, the resurgence of COVID-19 and geopolitical issues attributed to the decline in the group’s operating profit in the first quarter of 2022.
2021 was a momentous year for Hankook & Company as the group announced that it will launch as an operating holding company to achieve maximized efficiency under a rapidly changing business environment. Series of foresighted investments and key structural decisions followed, starting with the merger in April which saw the battery brand, AtlasBX, become part of Hankook & Company. Through this merger, batteries are representatively sold under the ‘Atlas BX’, and ‘Hankook’ brand, currently providing to approximately 120 countries around the world. In the following month in May, the company declared a new long-term business portfolio, named ‘S.T.R.E.A.M’ to increase competitiveness and gain stronger leadership in the company’s core businesses. Each letters of the acronym demonstrate the essential directions the group aims to take in future development, with ‘S’ standing for Smart Energy, ‘T’ for ‘Tire & Core’ business, ‘R’ for Rising Tech, ‘E’ for Electrification, ‘A’ for Automation, and ‘M’ for Mobility.
Hankook & Company plans to continue supporting the expansion of its battery business and search for new business opportunities in line with the goal of securing the business model for sustainable growth.
Q4 2021 Consolidated Financial Result
|(Unit: Billion KRW)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|(Unit: Million USD)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|(Unit: Million EUR)||Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|Q1 FY 2021||Q4 FY 2021||Q1 FY 2022|
|USD / KRW||1,114.05||1,183.17||1,204.95|
|EUR / KRW||1,342.62||1,352.51||1,352.44|
(NOTE: Average exchange rates for the given annual period, retrieved from Korea Exchange Bank)