Foxconn Technology (2354) H1 2024 earnings summary

Executive summary

• Operating revenue for the six months ended June 30, 2024 was NT$22.36 billion, down 44% year-over-year; net profit attributable to owners was NT$1.71 billion, down 20% year-over-year.

• Gross margin improved to 10% from 7% year-over-year, but operating margin remained at 3% due to higher operating expenses.

• Cash and cash equivalents decreased to NT$20.79 billion from NT$58.60 billion a year ago, reflecting significant outflows from investing activities.

• The company distributed NT$2.12 billion in cash dividends in 2024, maintaining a payout ratio above 15% of distributable earnings.

Financial highlights

• Operating revenue for Q2 2024 was NT$13.50 billion, down 20% compared to Q2 2023; six-month revenue was NT$22.36 billion, down 44% year-over-year.

• Net profit for Q2 2024 was NT$864 million, down 37% year-over-year; six-month net profit was NT$1.71 billion, down 20%.

• Basic EPS for Q2 2024 was NT$0.61, and NT$1.21 for the six months, compared to NT$0.97 and NT$1.51 in the prior year.

• Cash flow from operations was NT$2.30 billion for the six months, down from NT$5.22 billion in the prior year.

• Total assets as of June 30, 2024 were NT$143.07 billion, up 7% from December 2023.

Outlook and guidance

• Management expects continued pressure on revenue due to weak demand in consumer electronics, but aims to maintain profitability through cost controls and margin improvements.

• No significant changes in capital expenditure plans; focus remains on core business and selective investments.