Ecopro Co (086520) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated revenue increased 6.2% quarter-over-quarter (QOQ) to KRW 6,313 billion, driven by higher external battery materials sales and strong environmental business performance, but operating losses widened due to significant inventory valuation provisions at non-listed subsidiaries.

• Annual 2024 revenue declined 57% year-over-year (YOY) to KRW 31,103 billion, with operating losses reflecting a challenging downstream market and lower metal prices.

• Listed subsidiaries showed improved profitability, while cost innovation and management efficiency initiatives continued.

• Subsidiaries EcoPro BM, EcoPro Materials, and EcoPro HN showed mixed results, with some QOQ improvements but persistent YOY declines.

Financial highlights

• Q4 2024 consolidated revenue: KRW 6,313 billion (+6.2% QOQ, -57% YOY); full-year 2024 revenue: KRW 31,103 billion (-57% YOY).

• Q4 2024 consolidated EBIT: -KRW 1,213 billion; EBITDA: -KRW 734 billion; operating losses widened QOQ due to inventory valuation provisions.

• EcoPro BM Q4 2024 revenue fell 11% QOQ to KRW 464.9 billion; operating loss improved QOQ to KRW 9.6 billion, aided by a KRW 12.9 billion inventory provision reversal.

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

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

Outlook and guidance

• Battery materials business expected to recover sales and profitability in Q1 2025 as inventory adjustment ends and new EV launches drive demand.

• 2025 full-year guidance anticipates sales volume growth, new customer wins, and improved profitability from productivity and cost innovation.

• Environmental business to see temporary Q1 2025 slowdown, but recovery expected in H2 2025 from battery and semiconductor materials.

• EcoPro Materials expects significant profit improvement from the Green Eco Nickel acquisition and expanded upstream integration.