L&F Co (066970) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was 351,628 million KRW, down 36.6% QoQ and 72% YoY, driven by shipment declines and lower ASPs.

• Operating profit improved 14% QoQ to -72,417 million KRW, reflecting cost-saving efforts despite ongoing losses.

• Net profit was -76,951 million KRW in Q3, with a net margin of -22%, impacted by non-operating losses and shipment drops.

• L & F Co., Ltd. manufactures cathode active materials for secondary batteries, with two consolidated subsidiaries and a recent transfer from KOSDAQ to KOSPI in January 2024.

• Interim financial statements for the nine months ended September 30, 2024, were reviewed with no material misstatements found.

Financial highlights

• Revenue for the nine months ended September 30, 2024, was W1,542.1 billion, down from W3,986.5 billion year-over-year.

• Net loss attributable to owners for the nine months was W261.4 billion, compared to a net profit of W89.9 billion in the prior year.

• Gross margin for the nine months was approximately 20.8%, down from 11.1% year-over-year.

• Operating profit at -72,417 million KRW in Q3, a 14% QoQ improvement but still negative.

• Ending cash balance was 369,716 million KRW, down 6% QoQ but up 53% YoY.

Outlook and guidance

• Growth anticipated from Hi-Ni segment with the launch of NCMA 95.

• Positive operating cash flow trend expected to continue amid external challenges.

• The company is reviewing the impact of new IFRS amendments effective from 2025, with no significant impact from 2024 amendments.