Ecopro Posts Q2 Operating Profit of 32.9 Billion Won, Down 41.7% from Previous Quarter

Ecopro announced on August 4 that it posted consolidated sales of 820.8 billion won and operating profit of 32.9 billion won in the second quarter of this year. While sales increased by 0.3% compared to the previous quarter (818.3 billion won), operating profit decreased by 41.7% compared to the previous quarter (56.4 billion won).

Sales in the recycling division increased, supported by favorable metal prices and exchange rate effects, and operating profit in the lithium business sector also improved, both contributing positively to the performance.

However, profitability was somewhat dampened due to a temporary decline in the operating rate at the nickel smelter in Indonesia, caused by heavy local rainfall. Since the recovery measures for the smelter have now been completed and production has resumed, a performance rebound is expected in the second half of the year.

Ecopro BM, which manufactures cathode materials, reported consolidated sales of 576.7 billion won and operating profit of 18 billion won in the second quarter. The company explained, "While sales and operating profit edged down due to stagnant demand in the European electric vehicle market, increased demand from AI data centers and power applications supported our performance."

Ecopro Materials, responsible for the precursor business, expanded sales to external customers, leading to second-quarter sales of 178.8 billion won—an increase from the previous quarter (166.5 billion won). However, it posted an operating loss of 10.6 billion won due to a temporary decrease in the operating rate at the Green Eco Nickel (GEN) smelter in Indonesia caused by heavy rainfall.

A company representative stated, "With the GEN smelter's operating rate recovering, and with the acquisition of new customers in North America and changes in the external environment such as the abolition of China's VAT refunds, profitability is expected to improve over the mid- to long-term."

Ecopro HN, which operates the eco-friendly materials business, saw both sales and operating profit rise in the second quarter compared to the previous quarter, recording sales of 51.5 billion won and operating profit of 5.8 billion won.

Additionally, the lithium business saw improved profitability as the increase in lithium prices was reflected in selling prices. The recycling business also continued to post growth in sales, driven by the increase in metal prices and exchange rate gains.

Hojoon Song, CEO of Ecopro, stated, "While uncertainty in the business environment persists, we are proceeding as planned to strengthen supply chain competitiveness and invest in future growth businesses. We will continue to build a foundation for sustainable growth through stable operation of existing businesses and the creation of results in new business areas."

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