Foosung (093370) Q3 2024 earnings summary

Executive summary

• Revenue for 2024 Q3 YTD was ₩327.4 billion, down 37.4% year-over-year due to weak demand in key sectors and global economic slowdown.

• Operating loss was ₩7.0 billion, a significant deterioration from the ₩46.1 billion loss in the prior year period.

• Net loss attributable to owners was ₩1.6 billion, a sharp improvement from the ₩84.4 billion loss in 2023 Q3 YTD.

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

Financial highlights

• Gross margin for 2024 Q3 YTD was 28.0%, up from 21.9% in 2023 Q3 YTD.

• EBITDA margin improved due to cost controls and lower raw material prices.

• Cash and cash equivalents at period end were ₩57.3 billion, up from ₩27.8 billion at 2023 year-end.

• Total assets stood at ₩898.7 billion, with equity of ₩412.2 billion and liabilities of ₩486.5 billion.

Outlook and guidance

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

• Focus remains on cost optimization, R&D for new materials, and expanding overseas sales.

• No quantitative guidance provided for full-year 2024.