Formosa Plastics (1301) Q2 2024 earnings summary

Executive summary

• Operating revenue for the six months ended June 30, 2024 was NT$99.2 billion, down 1.4% year-over-year, with net income of NT$1.59 billion, a 55% decrease from NT$3.57 billion in the prior year period.

• Gross profit margin for the six months was 6%, compared to 4% in the same period last year, reflecting improved cost control despite lower revenues.

• Total comprehensive income for the six months was NT$7.87 billion, reversing a loss of NT$1.57 billion in the prior year period, mainly due to positive other comprehensive income.

Financial highlights

• Operating costs decreased to NT$93.6 billion from NT$96.3 billion year-over-year, supporting a higher gross margin.

• Basic and diluted EPS for the six months were NT$0.25, down from NT$0.56 in the prior year period.

• Cash and cash equivalents at June 30, 2024 were NT$7.05 billion, up from NT$6.15 billion at year-end 2023 but down from NT$11.21 billion at June 30, 2023.

• Total assets increased to NT$549.3 billion from NT$530.7 billion at year-end 2023.

Outlook and guidance

• Management expects the adoption of new IFRS standards in 2025 and 2027 to have no significant impact on financials.

• No seasonality or cyclicality factors are expected to affect operations.