Kolon Industries (120110) Q4 2024 earnings summary

Executive summary

• 4Q24 sales reached KRW 1,298 billion, up 5.9% year-over-year and 18.1% sequentially, driven by strong Industrial Materials and Chemicals performance.

• Operating profit was KRW 36 billion, down 35.6% year-over-year but up 8.8% sequentially, impacted by weaker Fashion and Others segments.

• Net profit for 4Q24 was KRW 51 billion, a turnaround from a net loss in 4Q23.

Financial highlights

• Full-year 2024 sales totaled KRW 4,843 billion, up from KRW 4,735 billion in 2023.

• Operating profit margin for 4Q24 was 2.7%, compared to 3.1% in 4Q23.

• Net debt ratio improved to 59% at 2024 year-end from 66% in 2023.

• Total assets increased to KRW 7,248 billion at year-end 2024.

Segment performance

• Industrial Materials: 4Q24 sales KRW 571 billion (+12.3% YoY), operating profit KRW 26 billion (-17.9% YoY), impacted by aramid maintenance and one-off merger costs.

• Chemical: 4Q24 sales KRW 255 billion (+30.7% YoY), operating profit KRW 26 billion (+379.6% YoY), driven by strong petroleum and phenolic resin demand.

• Film/Electronic Materials: 4Q24 sales KRW 60 billion (-19.4% YoY), operating loss KRW 9 billion, with YoY loss reduction due to improved PCB demand.

• Fashion: 4Q24 sales KRW 381 billion (-8.7% YoY), operating loss KRW 13 billion, affected by weak consumer sentiment and abnormal winter weather.

• Others: 4Q24 sales KRW 32 billion (+2.9% YoY), operating loss KRW 20 billion, with losses due to off-seasonality and one-off costs.