EcoPro Q3 Operating Profit Plunges 92.5% to KRW 11.2 Billion

Falling metal prices and a weak exchange rate weigh on earnings
"Expand overseas orders... accelerate global operations"

A view of EcoPro's headquarters in Cheongju, North Chungcheong Province. EcoPro

EcoPro, the holding company of the EcoPro Group, saw its operating profit plunge in the third quarter, weighed down by falling metal prices and a weakening exchange rate.

EcoPro said on Nov. 5 that it posted consolidated revenue of KRW 810.7 billion and operating profit of KRW 11.2 billion in the third quarter of this year. Revenue fell 15.5% and operating profit declined 92.5% from a year earlier. Cumulative revenue for the first three quarters was KRW 2.4504 trillion, while operating profit totaled KRW 101.1 billion.

By affiliate, EcoPro BM, which produces cathode materials, posted operating profit of KRW 12 billion in the third quarter, down 76.2% from the same period last year, while revenue fell 10.7% to KRW 557.9 billion.

EcoPro said EcoPro BM's revenue declined as growth in the North American electric vehicle market slowed, but sales of energy storage systems (ESS) increased amid the expansion of artificial intelligence (AI) data centers.

EcoPro HN, which operates an eco-friendly materials business, recorded revenue of KRW 52.8 billion and operating profit of KRW 11.3 billion in the third quarter. These figures were up 85.9% and 386.3%, respectively, from the third quarter of last year. Profitability improved as orders grew amid a boom in the semiconductor industry.

EcoPro Materials, which is responsible for the precursor business, posted an operating loss of KRW 29 billion in the third quarter, widening its loss. Revenue rose 186.8% from the same period last year to KRW 181.1 billion. Profitability is believed to have declined due to the weak exchange rate and lower metal prices.

Revenue from the recycling and other business segments was KRW 41.8 billion, up KRW 8.6 billion from KRW 33.2 billion in the previous quarter. The lithium business posted revenue of KRW 54.2 billion, as some volumes declined due to a customer's production-line conversion.

EcoPro said it plans to accelerate its global operations by expanding orders from new overseas customers.

The EcoPro Group recently signed a tolling agreement with a new customer in North America to process black mass on the customer's behalf using its Closed-Loop Eco System (CLS) technology. Black mass is a powder obtained by shredding used batteries and contains valuable metals such as nickel, cobalt and lithium.

The EcoPro Group said it is discussing its "EcoPro Package," under which the entire group will work together to supply materials based on recycled minerals, including lithium, precursors and cathode materials, with multiple customers, including those in North America.

EcoPro HN expects its performance improvement to accelerate as orders for environmental plants begin contributing to revenue in the fourth quarter. EcoPro BM said it plans to gradually increase shipments by stabilizing production lines at its Hungarian plant, its European base, and securing new orders.

EcoPro CEO Kim Jangwoo said, "We plan to lay the groundwork for improving our performance by diversifying business opportunities with customers, including tolling black mass, securing new precursor volumes and acquiring new cathode material customers. Starting in the fourth quarter, we will pursue solid growth and continue to secure mid- to long-term growth drivers."

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