L&F (066970) Q4 2023 earnings summary

Executive summary

• FY2023 sales rose 19.5% YoY to KRW 4.6441tn; operating results swung from KRW 266.3bn profit to KRW 222.3bn loss.

• Q4 sales fell 47.6% QoQ to KRW 657.6bn, with an operating loss of KRW 280.4bn amid lower shipments, ASP and inventory valuation losses.

Financial highlights

• FY2023 cost of sales reached ₩4.784tn, producing a gross loss of ₩139.6bn versus gross profit of ₩351.4bn in 2022.

• FY2023 net loss was ₩194.9bn versus net income of ₩271.0bn; Q4 net loss was KRW 299.5bn.

• Q4 sales were KRW 657.6bn, down 47.6% QoQ; shipment volume fell 43% and blended ASP declined 2%.

• FY2023 sales growth reflected shipment volume up 4.4% and ASP up 17.6%.

• Net cash outflow from operating activities was ₩864.3bn; year-end cash and cash equivalents were ₩241.3bn.

Outlook and guidance

• Forward demand slowdown prompted inventory asset management; Q4 ending inventory assets were KRW 1.1634tn, down 19% QoQ.

• A lithium price rebound could create potential unrealized inventory valuation gains; timing and amount were not specified.