Hanjin Kal (180640) Q4 2022 earnings summary

Executive summary

• FY22 consolidated revenue rose 35.0% YoY to ₩200.3bn; operating income was ₩14.5bn versus a ₩9.9bn loss in FY21.

• Net income reached ₩659.6bn, including ₩253.7bn from discontinued operations after the Jin Air stake sale; continuing-operations profit was ₩405.9bn.

Financial highlights

• Consolidated gross profit was ₩77.1bn, up 74.7% YoY; selling and administrative expenses increased 15.8% to ₩62.6bn.

• Standalone revenue was ₩45.8bn, operating income ₩24.8bn and net income ₩379.2bn; results included a ₩493.6bn Jin Air disposal gain and ₩20.9bn subsidiary-investment impairment.

• Consolidated cash and cash equivalents were ₩151.5bn and short-term financial investments ₩264.3bn at year-end.

Outlook and guidance

• Travel and hotel demand was expected to keep recovering in 2023 as entry restrictions eased; hotel occupancy and reservation activity were cited as drivers of continued segment recovery.

• Airline guidance called for passenger capacity to reach 75% of 2019 levels on average in 2023; cargo demand was expected to remain soft amid economic slowdown and stronger competition.

• Liquidity actions included cost reviews, debt maturity extensions and capital-market funding; sale proceeds from 제주 KAL Hotel assets were intended for debt repayment and balance-sheet improvement.