L&F Co (066970) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached 364,782 million KRW, a 0.2% decrease quarter-over-quarter and 31.2% increase year-over-year.

• Operating loss improved by 29.2% QoQ to -140,253 million KRW, driven by cost ratio improvements and reduced inventory loss.

• Shipment volume increased 5% QoQ, led by new product launches and Hi-Ni growth; NCMA90 regained market share.

• Inventory loss reduced to 74.7 billion KRW as high-cost inventory depleted, supporting profit recovery.

• Hi-Ni products accounted for 75% of Q1 shipments, with Ni95 launch boosting share.

Financial highlights

• Gross profit for Q1 2025 was -120,078 million KRW, with a gross margin of -33%.

• Net loss for Q1 2025 was -111,263 million KRW, net margin -31%.

• Ending cash balance rose 9.2% QoQ to 305,102 million KRW, despite a 27% YoY decline.

• Operating cash flow was -19,224 million KRW, with positive cash trend maintained through lower raw material buys.

Outlook and guidance

• Ni95 new product shipments to ramp up in Q2, exceeding early-year plans.

• High nickel product shipment forecast revised upward for 2025.

• Inventory impact expected to resolve after H1 as raw material prices stabilize and purchases reduce.

• 450,000 tons order backlog secured, with supply starting in 2026; focus on ESS and EV applications in the American market.

• LFP business initiated, aiming for stable revenue through client diversification.