Solus Advanced Materials, 3Q Turns to Deficit... "Impact of Battery Foil Recall"

"Expected to Return to Profit Next Year"

[Asia Economy Reporter Moon Chaeseok] Solus Advanced Materials announced on the 28th that it recorded provisional sales of 105.6 billion KRW and an operating loss of 19.6 billion KRW in the third quarter. Compared to the same period last year, sales increased by 1%, but operating profit turned to a loss.

Solus Advanced Materials explained that amid the expanding uncertainty in the global macroeconomy and worsening external conditions such as the prolonged Russia-Ukraine war and the resulting power shortage in Europe, the impact of the battery foil recall affected profitability deterioration.

By business segment, the battery foil business division (Battery Foil Business Headquarters and Copper Foil Business Headquarters) recorded sales of 68.5 billion KRW in the third quarter. The company explained that due to the sharp rise in European electricity costs, production at Hungary Plant 1 was reduced, and the battery foil recall costs were reflected, slowing the sales growth trend.

The Advanced Materials Business Division (Electronic Materials Business Headquarters and Bio Business Headquarters) posted sales of 37.1 billion KRW during the same period. In particular, the Electronic Materials Business Headquarters led the division's sales by achieving the highest quarterly performance since the start of the business in 2004 through material diversification and customer diversification.

Kwak Geunman, Chief Financial Officer (CFO) of Solus Advanced Materials, said, "Considering the early entry advantage into advanced markets in Europe and North America, the burden of battery foil recall costs will not have a significant impact on mid- to long-term business growth." He added, "With the goal of turning a profit next year, we will strive to secure stable trading partners across all business divisions in the fourth quarter despite the complex internal and external adversities."