Kolon Industries (120110) Q2 2024 earnings summary

Executive summary

• 2Q 2024 sales reached KRW 1,284 billion, nearly flat year-over-year and up 10.6% sequentially, driven by strong Chemical division and seasonal gains in Fashion and Industrial Materials.

• Achieved consolidated sales of ₩2,445.2 billion and operating profit of ₩90.1 billion for H1 2024, with net income of ₩64.2 billion.

• Industrial materials led sales (47.7%), followed by fashion (24.6%), chemicals (20.7%), film/electronic materials (4.5%), and others (2.5%).

• Operating profit was KRW 59 billion in 2Q 2024, down 21.4% year-over-year but up 94.1% from the previous quarter, impacted by one-time costs in the Others division.

• Net profit rose to KRW 44 billion in 2Q 2024, a significant increase both year-over-year and sequentially.

Financial highlights

• H1 2024 consolidated revenue: ₩2,445.2 billion (down from ₩5,061.2 billion FY2023).

• Operating profit: ₩90.1 billion (down from ₩157.6 billion FY2023).

• Net income: ₩64.2 billion (up from ₩50.8 billion H1 2023).

• 2Q 2024 sales: KRW 1,284 billion (YoY -0.3%, QoQ +10.6%).

• Gross profit margin: 24% in 2Q 2024, down from 26% in 2Q 2023; H1 2024 gross margin: 20.6%.

Outlook and guidance

• Industrial Materials expects demand recovery for key products and benefits from aramid pulp expansion in the second half.

• Focus on expanding eco-friendly and high-value product portfolios, including PBAT and PCR plastics.

• PET film business to be spun off into a JV with SK Microworks to strengthen global competitiveness.

• Continued investment in aramid and PMR capacity to meet growing demand in automotive and electronics.

• Fashion division is expanding globally, leveraging seasonal momentum.