Formosa Plastics (1301) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 2025 was NT$47.2 billion, down 1.9% year-over-year; net income was NT$50 million, a significant decrease from NT$221 million in Q1 2024.

• Total comprehensive income rebounded to NT$4.46 billion from a loss of NT$3.61 billion in Q1 2024, driven by strong other comprehensive income.

• The audit opinion was qualified due to certain subsidiaries and equity-accounted investees not being reviewed by independent auditors.

Financial highlights

• Gross profit margin improved to 5% from 4% year-over-year, with gross profit at NT$2.46 billion.

• Operating loss was NT$892 million, compared to a loss of NT$1.45 billion in Q1 2024.

• Net cash from operating activities was negative NT$107 million, a decline from positive NT$54 million in Q1 2024.

• Cash and cash equivalents increased to NT$21 billion from NT$7.1 billion a year ago.

• Total assets stood at NT$506 billion, with equity at NT$290 billion as of March 31, 2025.

Outlook and guidance

• The group is evaluating the impact of IFRS 18 and other new standards effective in 2027, with no immediate material impact expected.

• No seasonality or cyclicality factors affected operations in the reporting period.