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 was ₩5.2 billion, a significant improvement from a ₩46.1 billion loss in H1 2023, but a reversal from a profit of ₩105.4 billion in H1 2022.

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

• The company completed a rights offering in April 2024, raising capital for facility investments in battery and semiconductor sectors.

Financial highlights

• Gross profit margin for H1 2024 was 19.2%, up from 13.4% in H1 2023.

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

• Cash and cash equivalents at June 30, 2024, were ₩58.1 billion, up from ₩27.8 billion at year-end 2023.

• Total assets increased to ₩929.7 billion from ₩853.4 billion at year-end 2023.

• Total liabilities were ₩513.5 billion, with a debt-to-equity ratio of 123.4%.

Outlook and guidance

• Management expects continued market volatility and slow recovery in downstream industries.

• Ongoing investments in battery materials and semiconductor gas facilities are expected to support future growth.

• No specific quantitative guidance provided for H2 2024.