Kolon Industries (120110) Q3 2024 earnings summary

Executive summary

• Sales reached KRW 1,100 billion in 3Q24, up 3.5% year-over-year but down 14.4% sequentially due to aramid facility maintenance and fashion off-season.

• Operating profit was KRW 33 billion, up 5.1% year-over-year but down 44.6% sequentially, with key products like tire cord and hydrocarbon resins driving annual growth.

• Net profit turned to a loss of KRW 4 billion, compared to a profit of KRW 44 billion in the previous quarter and a loss of KRW 7 billion in 3Q23.

Financial highlights

• Gross profit margin remained stable at 28% in 3Q24.

• Debt ratio improved to 88% in 3Q24 from 105% at FY23, and net debt ratio decreased to 56%.

• Total assets increased to KRW 6,146 billion, with equity rising to KRW 3,269 billion.

• Cash at end of period was KRW 196 billion, up from KRW 174 billion at the start of the quarter.

Outlook and guidance

• Aramid facility maintenance expected to conclude in 4Q24, with an aramid pulp expansion line (+1.5kt) coming online.

• Fashion division is focusing on global market expansion amid weak domestic demand.