Foosung (093370) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ₩220.5 billion, down 24.8% year-over-year due to weak demand in key end-markets and global economic slowdown.

• Operating loss of ₩5.2 billion, a significant improvement from a ₩46.1 billion loss in H1 2023, but still below the ₩105.4 billion profit in H1 2022.

• Net income attributable to controlling interests was ₩7.4 billion, reversing a net loss of ₩53.9 billion in H1 2023.

• Major capital raise via rights offering in April 2024, increasing capital to ₩53.6 billion and supporting facility investments.

Financial highlights

• Total assets at June 30, 2024: ₩929.7 billion; total liabilities: ₩513.5 billion; equity: ₩416.2 billion.

• Gross margin improved to 15.7% in H1 2024 from 13.7% in H1 2023.

• Basic EPS for H1 2024 was ₩74, compared to -₩581 in H1 2023.

• Cash and equivalents rose to ₩58.1 billion, up from ₩27.8 billion at year-end 2023, aided by new equity issuance.

Outlook and guidance

• Management expects continued volatility in demand for battery materials and semiconductor gases due to macroeconomic uncertainty.

• Ongoing investments in capacity expansion for LiPF6 and semiconductor specialty gases to capture future growth.