Solus Advanced Materials (A336370) Q3 2024 earnings summary

Executive summary

• 3Q24 sales rose 21.1% YoY to KRW 134.7 billion but declined 9.8% QoQ due to inventory adjustments and temporary demand decreases from major customers.

• Revenue for the first nine months of 2024 was ₩405.2 billion, down from ₩429.4 billion YoY.

• EBITDA increased 6.8% YoY but turned negative QoQ, reflecting higher fixed costs amid lower sales.

• Operating loss for the first nine months was ₩43.1 billion, compared to a loss of ₩73.2 billion in 2023.

• Net loss attributable to controlling interests was ₩55.3 billion, reversing a net profit of ₩125.9 billion in the prior year, which included a large gain from discontinued operations.

Financial highlights

• 3Q24 sales: KRW 134.7 billion, up 21.1% YoY, down 9.8% QoQ.

• EBITDA up 6.8% YoY but negative QoQ.

• Operating loss of KRW 18.6 billion in 3Q24, with a margin of -13.9%.

• Net loss of KRW 36.3 billion in 3Q24.

• Gross margin for the period was 20.6%, slightly lower than the previous year.

Outlook and guidance

• Plans to expand battery foil production capacity in Hungary and prepare for North American market entry with a new Canadian plant targeting 2026 mass production.

• OLED materials business is scaling up with new product lines and increased production capacity.

• Elecfoil and copper foil segments plan to expand high-end product supply to AI and tech markets.

• Electronic materials segment aims to diversify its product portfolio.