SKC (011790) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 462.3 bn, down 2.2% sequentially but up 22.5% year-over-year.

• Net profit improved to -49.5 bn, a 57.2% sequential increase and 24.5% year-over-year improvement.

• Operating profit remained negative at -62.0 bn, with EBITDA at -16.7 bn.

• Report covers Q3 2024 (Jan 1–Sep 30) for a diversified materials and chemicals group.

• Strategic focus on global expansion, R&D, and portfolio optimization, including divestitures and acquisitions.

Financial highlights

• Q3 2024 consolidated revenue: ₩1,350.2B, down from ₩1,570.8B YoY.

• Operating loss: ₩200.8B (vs. loss of ₩216.3B YoY); net loss: ₩337.0B (vs. net loss of ₩282.8B YoY).

• Gross profit for Q3 was -1.1 bn, with COGS at 463.4 bn.

• Profit before tax was -112.7 bn, a 24.9% sequential improvement.

• Cash and equivalents: ₩382.2B; total assets: ₩6,752.5B; total liabilities: ₩4,346.1B.

Outlook and guidance

• Higher utilization in Malaysia expected due to new shipments and long-term contracts.

• Battery materials: global demand for copper foil expected to grow with EV/ESS market, but short-term demand remains soft.

• Semiconductor materials: continued R&D and market share expansion in CMP Pad and test sockets; memory market recovery expected in 2025.

• Vietnam plant expansion to meet increased demand from major tech customers.

• Initial CHIPS Act subsidy grant anticipated by year-end.