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.

• Revenue for the first nine months of 2024 was ₩1,542.1 billion, down 61% YoY from ₩3,986.5 billion in 2023.

• Operating profit improved 14% QoQ to -72,417 million KRW, but operating loss for the nine months reached ₩360.5 billion.

• Net profit was -76,951 million KRW in Q3, with a net margin of -22%; net loss for the nine months was ₩261.4 billion.

• The company’s main business is the manufacture and sale of cathode active materials for secondary batteries.

Financial highlights

• Revenue fell sharply to 351,628 million KRW in Q3 (QoQ -36.6%, YoY -72%).

• Gross margin remained negative at -15.5% in Q3 and declined sharply for the nine months.

• Cash and cash equivalents at quarter-end were ₩369.7 billion, up 53% YoY.

• Total assets decreased to ₩3,002.6 billion from ₩3,351.4 billion at the end of 2023.

• R&D expenses for the period were ₩28.5 billion, representing 1.85% of sales.

Outlook and guidance

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

• The company is closely monitoring market and customer trends for future investment decisions.

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

• Ongoing focus on inventory and cost management to improve margins.