An exterior view of Irupak, a subsidiary of Sun&L. [Sun&L]
An exterior view of Irupak, a subsidiary of Sun&L. [Sun&L]

Sun&L said Thursday that its subsidiary Irupak swung to an operating profit in the second quarter, following Sun&L's own return to profitability on a standalone basis in the same period. The company also completed the sale of assets including forestland in Pohang, pushing consolidated net profit for the period into the black.

According to a semiannual earnings disclosure the company filed Friday, Sun&L posted standalone sales of 54.3 billion won ($38.7 million) and an operating loss of 200 million won on a cumulative first-half basis. Stripping out the first quarter, however, the company recorded an operating profit of 900 million won in the second quarter alone.

Irupak, which operates a plastic packaging business, posted sales of about 4.4 billion won and an operating loss of 640 million won in the first quarter. In the second quarter, it swung to sales of about 6.7 billion won and an operating profit of about 480 million won. Net profit for the period also turned positive, from a loss of about 670 million won in the first quarter to a gain of about 390 million won in the second.

Another subsidiary, Sun&L Interior, posted standalone sales of 46.8 billion won, an operating loss of 2.6 billion won and a net loss for the period of 2.5 billion won for the first half.

"In the second quarter, our standalone operating profit returned to positive territory, and the sale of some assets — including forestland in Pohang — helped push consolidated net profit for the period into the black as well," a Sun&L official said. "In particular, Irupak's successful swing to profitability in the second quarter confirmed the growth potential and improving margins of the plastic packaging business."

The official added that Sun&L Interior continues to face a difficult operating environment due to the slowdown in the construction sector, but that the company would pursue a turnaround through improved profitability by business segment and cost efficiency. "In the second half, we will strengthen our growth drivers, centering on the lifestyle beauty and plastic packaging businesses," the official said.

Sun&L grew on the back of a timber business and has in recent years been cultivating lifestyle beauty and plastic packaging as new growth pillars.


andy@heraldcorp.com