Ecopro Reports 69% Operating Profit Decline Due to Metal Price Drop (Comprehensive)

Impact of Mineral Price Decline and Weak Front-End Demand

On the 7th, EcoPro announced consolidated third-quarter results with sales of 1.9038 trillion KRW and operating profit of 65 billion KRW.

Compared to the same period last year, sales increased by 16.7%, but operating profit decreased by 69.3%. Although the sales volume of battery materials products maintained an expansion trend, the decline in mineral prices negatively impacted operating profit. EcoPro's cumulative sales for the year to date reached 5.9854 trillion KRW, with operating profit of 417.6 billion KRW.

Looking at major affiliates, EcoPro BM posted third-quarter sales of 1.8033 trillion KRW and operating profit of 45.9 billion KRW. Sales rose 15.4% compared to the same period last year, but operating profit fell 67.6%. Although sales volume of cathode materials for electric vehicles increased, profitability declined due to falling mineral prices and weak demand in the upstream industry.

EcoPro HN, the only domestic eco-friendly total solution company, recorded third-quarter sales of 65.4 billion KRW and operating profit of 11.5 billion KRW. Sales increased 7.9% year-on-year, but operating profit decreased by 11.8%. Sales grew as business activities focused on fine dust reduction were strengthened.

An EcoPro official stated, "Operating profit significantly decreased due to the continuous decline in mineral prices," adding, "We expect difficulties to persist in the fourth quarter and will intensify efforts to overcome management challenges such as cost reduction."