Yageo (2327) Q4 2024 earnings summary

Executive summary

• 4Q2024 net sales reached NT$30,006M, down 5.5% QoQ but up 9.7% YoY, in line with expectations and guidance.

• FY2024 net sales grew 13.1% YoY to NT$121,667M, driven by acquisitions and strong demand in AI and China EV sectors.

• Q4 EPS was NT$7.10, impacted by a one-time tax expense of NT$1.211B; excluding this, EPS was NT$9.46.

• FY EPS was NT$38.13, or NT$40.49 excluding the tax impact.

• FY2024 net income was NT$19,487M (up 11.2% YoY).

Financial highlights

• 4Q2024 gross margin was 33.2% (down 2.0ppts QoQ, down 1.3ppts YoY); operating margin was 17.7% (down 3.2ppts QoQ, down 0.8ppts YoY).

• FY2024 gross margin improved 0.9ppts YoY to 34.4%; operating margin rose 0.2ppts to 19.2%.

• 4Q2024 net income was NT$3,688M (down 35.1% QoQ, down 22.4% YoY).

• EBITDA margin for 4Q2024 was 25.0% (down 3.3ppts QoQ, down 1.4ppts YoY); FY2024 EBITDA margin was 26.8% (up 0.1ppts YoY).

• 4Q2024 non-operating items posted a net gain of NT$883M, mainly from net interest income.

Outlook and guidance

• 1Q2025 net sales expected to be flat QoQ, with gross and operating margins projected to increase by 1.5–3ppts.

• Solid bookings and backlog support Q1 guidance; organic YoY sales growth anticipated.

• AI and China EV momentum remain strong, with gross margin expansion driven by favorable segment mix.

• Customer inventories are trending toward healthy levels.

• Ongoing monitoring of market supply and demand dynamics amid geopolitical tensions.