Lotte Energy Mati, Q1 Operating Profit 4.3 Billion Won... 29% Decrease YoY

"Strong Sales Growth Expected in Q2"

Lotte Energy Materials achieved stable performance in the first quarter due to customer diversification and increased sales to North America.

On the 9th, Lotte Energy Materials announced that it recorded consolidated sales of 241.7 billion KRW and operating profit of 4.3 billion KRW in the first quarter. Sales increased by 48% compared to the same period last year, achieving the highest first-quarter sales ever. Although operating profit decreased by 29% compared to the same period last year, it rose 282% from 1.1 billion KRW in the previous quarter, maintaining the only profitable trend in the copper foil industry.

Lotte Energy Materials copper foil product.
[Photo by Lotte Energy Materials]

Despite a decrease in growth expectations for the upstream industry due to the electric vehicle and secondary battery market chasm (temporary demand stagnation), the company explained that customer diversification and increased sales to North America contributed to the sales increase.

Total sales volume in the first quarter increased by 47% compared to the same period last year. In particular, sales volume to North America grew by 380% year-on-year, and sales volume to Europe grew by 99%. The company plans to expand global supply centered on North America and Europe to increase its market share in copper foil.

The debt ratio remains stable at 27%, and the company holds 743.3 billion KRW in cash and cash equivalents, securing additional CAPEX (capital expenditure) capacity.

Kim Yeon-seop, CEO of Lotte Energy Materials, said, "In the second quarter, along with steady sales growth, we expect the pace of sales growth to accelerate further in the second half of the year when volumes concentrate, through the expansion of high-end copper foil orders. We will become a key supplier contributing to customer growth by leveraging our superior technological competitiveness and process innovation."