AUO (2409) Q4 2023 earnings summary

Executive summary

• 4Q23 net sales were NT$63,346m, down 9.6% QoQ and up 20.3% YoY; consolidated net loss was NT$1,407m, while net loss attributable to owners was NT$1,510m.

• FY2023 net sales rose 0.5% to NT$247,964m; operating loss narrowed to NT$21,962m, consolidated net loss to NT$18,151m, and net loss attributable to owners to NT$18,203m.

Financial highlights

• 4Q23 gross profit was NT$2,134m, or 3.4% of sales, versus a gross loss of NT$4,587m in 4Q22; operating loss was NT$5,068m, versus NT$1,332m in 3Q23 and NT$10,909m in 4Q22.

• 4Q23 pretax loss was NT$5,360m; an NT$3,953m income tax benefit contributed to the NT$1,407m consolidated net loss.

• FY2023 gross profit was NT$4,610m, or 1.9% of sales, versus NT$1,568m, or 0.6%, in FY2022; operating loss was NT$21,962m versus NT$23,970m.

• FY2023 basic EPS was a loss of NT$2.37, compared with a loss of NT$2.39 in FY2022.

Outlook and guidance

• 1Q24 display area shipments are expected to be flat QoQ; blended ASP per square meter is forecast to decline by a mid-single-digit percentage QoQ on a product-mix-adjusted basis.

• Loading rates will be adjusted dynamically based on market conditions; forecasts may vary with actual supply, demand and economic conditions.