Solus Advanced Materials, Q2 Sales Reach 125.4 Billion KRW... 36% Increase

Profitability Deteriorates... Records Operating Loss
Impact of Unfavorable External Environment and Overseas Production Base Expansion

[Asia Economy Reporter Park Sun-mi] Solus Advanced Materials announced on the 20th that it recorded sales of 125.4 billion KRW and an operating loss of 7 billion KRW in the second quarter of this year.

Compared to the same period last year, sales increased by 36%, but operating profit turned to a loss. Amid worsening external conditions such as ▲ intensifying global inflation ▲ prolonged Russia-Ukraine war causing a sharp rise in European electricity costs, aggressive expansion of global production bases affected profitability indicators.

The Battery Foil Division (Battery Foil Headquarters and Copper Foil Headquarters) achieved sales of 83.2 billion KRW in the second quarter. Despite ▲ contraction in demand from downstream industries due to global supply chain disruptions ▲ increased fixed costs from the full-scale operation of the Hungary Plant 1 and preparation for mass production at Plant 2, the Battery Foil Headquarters increased its contribution to division sales through gradual external growth.

The Advanced Materials Division (Electronic Materials Headquarters and Bio Business Headquarters) continued its growth trend with sales of 42.2 billion KRW despite concerns over China’s COVID-19 lockdown measures. In particular, diversification of material applications and customer base in the Bio Business Headquarters supported the division’s sales increase.

Kwack Geun-man, CFO of Solus Advanced Materials, stated, “Although the timing of turning a profit is delayed more than expected due to unfavorable external conditions, the goal of breaking even within the year remains valid,” adding, “In the third quarter, we will focus on establishing a virtuous production cycle and strategic expansion investments to not miss opportunities in the battery foil market, which is expected to have mid- to long-term growth potential.”

Meanwhile, Solus Advanced Materials held a board meeting on the same day and resolved to invest in battery foil plants in Hungary and Canada.

This content was produced with the assistance of AI translation services.