Yageo (2327) Q3 2024 earnings summary

Executive summary

• Net sales for 3Q2024 reached NT$31,738 million, up 1% sequentially and 16% year-over-year.

• Net income attributable to the parent was NT$5,649 million, with EPS of NT$11.01.

• EBITDA for the quarter was NT$8,857 million, representing 27.9% of net sales.

• For the first nine months of 2024, net sales totaled NT$91,661 million, up 14.2% year-over-year.

• Net profit after tax for 1Q–3Q2024 was NT$15,711 million, up 23.8% year-over-year; EPS NT$31.06.

Financial highlights

• Gross margin for 3Q2024 was 35.2%, up 0.1 percentage points year-over-year and 2.0 percentage points year-over-year.

• Operating profit margin was 20.9%, up 1.3 percentage points year-over-year.

• Net income margin for 3Q2024 was 17.8%, with a year-over-year increase of 0.1 percentage points.

• Non-operating items in 3Q2024 posted a net gain of NT$556 million, mainly from net interest income.

• For 1Q–3Q2024, EPS was NT$31.06, up from NT$25.31 in the prior year period.

Outlook and guidance

• 4Q2024 revenue is expected to decline by a single-digit percentage sequentially.

• Gross margin and operating profit margin are both projected to decrease by a low single-digit percentage point quarter-over-quarter.

• Customer inventories are trending toward healthy levels despite ongoing global inflation and international conflicts.

• Plans to closely monitor market supply and demand and increase capacity utilization.

• Maintains optimism about operational momentum and future outlook, especially for AI applications.