EcoPro BM (247540) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated revenue rose 6.2% QoQ to KRW 631.3 billion, but operating losses widened to KRW 121.3 billion due to significant inventory valuation provisions at non-listed subsidiaries.

• Annual 2024 revenue dropped 57% YoY to KRW 3.1103 trillion, with operating losses of KRW 314.5 billion, reflecting a challenging year for the group.

• Profitability was impacted by inventory valuation losses, though some reversal occurred due to favorable year-end forex movements.

• Listed subsidiaries saw improved profitability, but unlisted subsidiaries' inventory asset valuation allowance of KRW 82.6 billion increased operating losses.

• Group-wide, external sales in battery materials and environmental business contributed to a 6.2% sequential sales increase.

Financial highlights

• EcoPro BM Q4 2024 revenue fell 11% QoQ to KRW 464.9 billion; operating loss improved QoQ to KRW 9.6 billion.

• EcoPro Materials Q4 2024 revenue up 34% QoQ to KRW 88.1 billion; operating loss narrowed to KRW 7.8 billion.

• EcoPro HN Q4 2024 revenue up 43% QoQ to KRW 80 billion; operating profit up 34% QoQ to KRW 7.6 billion, OP margin 9.5%.

• Inventory assets reduced across group companies, and debt ratios improved due to capital raising and repayment of borrowings.

• Group inventory value reduced by 10% QoQ; net debt to total asset ratio improved to 27.4%.

Outlook and guidance

• Q1 2025 expected to see revenue and profit recovery as customer inventory depletes and new EV launches drive demand.

• Full-year 2025 guidance includes sales volume growth, new OEM orders, and improved productivity.

• EcoPro Materials expects significant profit improvement from the Green Eco Nickel acquisition and mass production.

• EcoPro HN anticipates new business sales to be 10% of total in 2025, with growth from secondary battery and semiconductor materials.

• Battery materials business projected to recover sales and profitability in 1Q25, with cost innovation and management efficiency efforts ongoing.