Foosung (093370) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ₩327.4 billion, down 21.5% year-over-year due to global economic slowdown and weaker demand in key sectors.

• Operating loss reached ₩7.0 billion, a significant deterioration from the prior year's operating loss of ₩46.1 billion.

• Net income attributable to controlling interests was ₩6.5 billion, a turnaround from a net loss of ₩53.9 billion in the same period last year.

• The company completed a rights offering, increasing capital and supporting ongoing investments.

Financial highlights

• Total assets at September 30, 2024, were ₩898.7 billion, up from ₩853.4 billion at year-end 2023.

• Cash and cash equivalents increased to ₩57.3 billion from ₩27.8 billion at year-end.

• Equity rose to ₩412.2 billion, reflecting the capital increase.

• Gross margin for the period was 17.7%, down from 21.2% a year earlier.

• Basic EPS for the period was ₩64, compared to a loss of ₩581 per share last year.

Outlook and guidance

• Management expects continued challenges from global economic uncertainty and sluggish demand in electronics and battery sectors.

• Strategic focus remains on expanding global market share in fluorochemical and semiconductor specialty gases.

• Ongoing investments in new production capacity for battery materials and specialty gases are expected to support long-term growth.