Korea Zinc Company (010130) Q2 2024 earnings summary

Executive summary

• Consolidated sales reached 3,058 bn KRW in 2Q24, up 28.7% QoQ and 23.8% YoY, driven by higher metal prices and a strong USD.

• Operating profit rose to 269 bn KRW, up 84 bn QoQ, with OPM improving to 8.8%.

• Net profit increased to 175 bn KRW, up 63 bn QoQ.

• Subsidiaries' operating profit turned positive, supported by Sun Metals Corporation's improved profitability and Steel Cycle's turnaround.

Financial highlights

• EBITDA reached 318 bn KRW, up 91 bn QoQ.

• Shareholder equity increased to 9,759 bn KRW, with cash and equivalents at 938 bn KRW.

• Interim dividend for FY24 set at KRW 10,000 per share, with a total shareholder return of 71.4% for 1H24.

Outlook and guidance

• Profitability expected to improve further in 3Q24 due to cost reduction and operational efficiency from Fumer optimization.

• Sales volume anticipated to rise in the second half, driven by strong seasonality in lead demand.

• Subsidiaries' improved performance is expected to continue contributing to consolidated earnings.