Solus Advanced Materials (A336370) Q2 2024 earnings summary

Executive summary

• Achieved record quarterly sales of KRW 149.3 billion in 2Q24, up 47.5% year-over-year and 16.3% sequentially, driven by strong demand for battery and high-end copper foil.

• Operates in battery foil (copper foil, battery foil) and advanced materials (OLED materials) segments, with global manufacturing and R&D presence.

• 2024 H1 consolidated sales were 270,567 million KRW, with battery foil at 76.5% and advanced materials at 23.5%.

• Completed a major divestiture of its biotech subsidiary in July 2023 and executed a large-scale bonus issue in January 2024.

• EBITDA turned positive at KRW 6.3 billion, a 162.5% increase from the previous quarter, reflecting improved cost structure and higher sales.

Financial highlights

• 2Q24 sales: KRW 1,493 billion, up 23.1% sequentially and 47.5% year-over-year.

• 2024 H1 consolidated revenue: 270,567 million KRW, down from 429,422 million KRW in 2023 H1.

• Battery copper foil sales surged 44.3% QoQ and 82.0% YoY; copper foil up 14.9% QoQ and 36.0% YoY; electronic materials up 3.2% QoQ and 17.0% YoY.

• Gross profit for 2Q24 was KRW 114 billion, with an operating loss of KRW 105 billion, narrowing sequentially.

• Net loss for 2Q24 was KRW 99 billion, compared to a net loss of KRW 91 billion in 1Q24; H1 2024 net loss was 19,006 million KRW.

Outlook and guidance

• 2024 sales forecast: battery foil +113%, copper foil +13%, electronic materials +3% YoY.

• Continues to expand battery foil capacity in Europe and North America, targeting 100,000 tons annual capacity.

• Expects growth in EV battery and high-end copper foil demand, with new Canadian plant to start mass production by 2025.

• OLED materials segment expanding into IT and automotive displays, with new subsidiary and production ramp-up.

• Battery copper foil: focus on customer diversification and technology differentiation amid global EV slowdown.