L&F (066970) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached 1.91 trillion KRW, but operating losses persisted due to EV demand slowdown and low metal prices.

• Q4 2024 saw a 3.9% sequential sales increase, driven by higher shipments despite lower prices.

• Inventory losses and weak profitability led to a significant drop in equity and increased debt ratio.

Financial highlights

• Q4 2024 revenue was 365.4 billion KRW, up 4% sequentially; operating loss was 149.8 billion KRW.

• Full-year 2024 operating loss was 510.2 billion KRW, with net loss of 367.5 billion KRW.

• Gross margin remained negative in Q4 2024, reflecting continued cost pressures.

• Ending cash balance for Q4 was 267.5 billion KRW, down 28% sequentially but up 11% year-over-year.

Outlook and guidance

• 2025 expected to mark a growth phase with record Hi-Ni product shipments and LFP business expansion.

• New product launches and expanded client portfolio anticipated, with focus on lower-price EV market.