LOTTE Energy Materials (CEO Kim Yeon-seop) announced preliminary results for 2024 with consolidated sales of KRW 902.3 billion and operating loss of KRW 64.4 billion. Sales increased by 11.5% year-on-year, but operating profit turned into a loss due to the impact of electric vehicle Charme. Net profit was 54.7 billion won, a year-on-year increase.

Although the overall industry was sluggish due to the prolonged electric vehicle carmaking last year, sales increased by KRW 93.3 billion year-on-year due to diversification of customers and expansion of sales in North America. However, fixed costs increased due to a decrease in utilization rate due to customer inventory adjustments in the second half of the year, and operating losses turned into a loss due to inventory valuation losses due to exchange rate fluctuations in overseas subsidiaries. As a result, consolidated sales for the fourth quarter were KRW 186.4 billion and operating losses were KRW 40 billion.

LOTTE Energy Materials still maintains the highest level of financial stability in the industry with a debt-to-equity ratio of 19.7% and a borrowing-to-equity ratio of 6.5%. Based on this, the company is well positioned to expand its global CAPA for future business and execute Capex for its next-generation battery materials business.

LOTTE Energy Materials will hold a corporate presentation on February 6 for investors and analysts from securities firms. CEO Kim Yeon-seop will be the main presenter, and he will explain in detail about last year's earnings announcement and this year's management strategy.

'Last year was a very difficult time for LOTTE Energy Materials, as we were in the middle of a long and dark tunnel due to the prolonged electric vehicle crisis and uncertainty in the global external environment,' said Kim. 'Despite this growing uncertainty, we will continue to grow our influence in the battery material market through fundamental improvements and production innovation this year.'