Kolon Industries (120110) Q2 2024 earnings summary

Executive summary

• 2Q 2024 sales reached KRW 1,284 billion, nearly flat year-over-year and up 10.6% sequentially, driven by strong Chemical division and seasonal gains in Fashion and Industrial Materials.

• Operating profit was KRW 59 billion, down 21.4% year-over-year but up 94.1% from the previous quarter, impacted by one-time costs in the Others division.

• Net profit rose to KRW 44 billion, a significant increase both year-over-year and sequentially.

Financial highlights

• Sales: KRW 1,284 billion (YoY -0.3%, QoQ +10.6%).

• Operating profit: KRW 59 billion (YoY -21.4%, QoQ +94.1%).

• Net profit: KRW 44 billion (YoY +18.9%, QoQ +120%).

• Gross profit margin: 24% in 2Q 2024, down from 26% in 2Q 2023.

• EBITDA margin: 7% in 2Q 2024.

Outlook and guidance

• Industrial Materials expects demand recovery for key products and benefits from aramid pulp expansion in the second half.

• Chemical division anticipates continued stable performance with new PMR capacity online.

• Fashion division is expanding globally, leveraging seasonal momentum.