EcoPro BM Turns Profitable in Q1 with 2.3 Billion KRW Operating Profit... Down 66% YoY

EcoPro BM has successfully returned to profitability, escaping two consecutive quarters of losses, thanks to its cost reduction efforts and strong product sales.

Exterior view of the EcoPro BM headquarters located in Ochang, Cheongju, Chungbuk. Provided by EcoPro BM

On April 29, EcoPro BM announced that its consolidated operating profit for the first quarter of this year was 2.3 billion KRW. This represents a 66% decrease compared to the same period last year.

Revenue was 629.8 billion KRW, down 35.1% from the same period last year. EcoPro BM explained, "Given that we recorded losses for both the third and fourth quarters last year, the return to profitability this quarter is significant as it breaks the chain of losses."

The improvement in EcoPro BM's performance is attributed to increased sales of cathode materials for electric vehicles. In the first quarter, sales of cathode materials for electric vehicles reached 503 billion KRW, a 76% increase compared to the fourth quarter of last year (285.9 billion KRW). Both nickel-cobalt-aluminum (NCA) and nickel-cobalt-manganese (NCM) product sales performed well.

EcoPro BM expects to boost revenue this year through the effect of new vehicle launches and diversification of its product portfolio, including energy storage systems (ESS). The company also plans to enhance profitability through productivity improvements and cost reduction efforts driven by process innovation.

EcoPro BM is also working to maintain stable liquidity. Due to increases in accounts receivable and cash-equivalent assets, the current ratio (current assets divided by current liabilities) rose from 106% at the end of last year to 114% at the end of the first quarter this year.

Last year, EcoPro BM secured a borrowing limit of approximately 1.2 trillion KRW through an export credit agency (ECA). In the first quarter, the company drew down 335.4 billion KRW from its ECA borrowing limit and invested it in the construction of its plant in Hungary. The annual cathode material production capacity (CAPEX) of the Hungary plant is 54,000 tons.

The company stated, "The Hungary plant is scheduled to be completed in the second half of this year, after which it will begin full-scale commercial production for local customers in Europe. Once the plant is fully operational, we expect our profitability structure to become more solidified."

EcoPro BM plans to establish an integrated cathode material subsidiary in Indonesia, which will enable a significant reduction in product manufacturing costs. Along with the establishment of the subsidiary, the company is also focusing on securing new customers.

An EcoPro BM representative said, "If we complete the Hungary plant in Europe in the second half of the year and establish and begin construction of the integrated cathode material subsidiary in Indonesia within the year, the business competitiveness of the EcoPro Group will be further enhanced. We plan to strengthen our mass production capabilities and product competitiveness for ternary cathode materials, while also accelerating research and development on future materials such as solid electrolyte cathode materials and sodium-ion battery (SIB) cathode materials."

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