EcoPro BM (247540) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue declined 15% quarter-over-quarter to KRW 864.1 billion, with an operating loss of KRW 54.6 billion, mainly due to lower battery material ASPs and subdued downstream demand.

• EBIT was -KRW 54.6 billion and EBITDA -KRW 8.7 billion, reflecting higher material costs and weak market demand.

• Inventory valuation reversals and global resources investments contributed positively, but borrowings increased to support expansions.

• Expansion in Europe is progressing, with the Hungary cathode plant set to begin production in Q3 2025 and capacity targets of 180,000 tons by 2028.

• Achieved global No.1 market share in high-nickel cathode materials for two consecutive years (2022–2023).

Financial highlights

• 2024 H1 consolidated revenue: KRW 1,779,976 million, with Q2 revenue at KRW 864.1 billion, down 15% QoQ and 57% YoY.

• 2024 H1 operating profit: KRW 10,576 million; Q2 EBIT: -KRW 54.6 billion, EBITDA: -KRW 8.7 billion.

• 2024 H1 net profit attributable to owners: KRW -21,520 million; Q2 net income: -KRW 63.6 billion.

• Cash and cash equivalents at June 2024: KRW 412,039 million; consolidated group cash & equivalents: KRW 802.6 billion.

• EcoPro BM Q2 revenue fell 17% Q/Q to KRW 809.5 billion; operating profit was KRW 3.9 billion, flat Q/Q due to inventory valuation reversals.

Outlook and guidance

• Metal price volatility expected to ease in H2, with gradual price increases anticipated and profitability improvement as inventory valuation reversals continue.

• Expanding product portfolio to include mid-nickel, OLO (Mn-rich), LFP (LMFP), and sodium-based cathodes.

• Long-term supply contracts secured with SK Innovation (KRW 10.1 trillion, 2024–2026) and Samsung SDI (KRW 43.9 trillion, 2024–2028).

• Ongoing capacity expansion in Korea and overseas (Hungary, Canada), with new plants scheduled for completion in 2024.

• EcoPro BM expects a cautious rebound in EV cathode sales after OEM inventory clears, with strong ESS demand supporting growth.