Ecopro has encountered a significant setback in its third-quarter operating profit, plummeting by nearly 70%. This sharp decline is largely attributed to the ongoing drop in mineral prices, impacting the company’s bottom line.
The company disclosed that its consolidated operating profit for the third quarter amounted to 65 billion won, representing a substantial 69.3% decrease in comparison to the same period last year. However, there was a notable uptick in sales, which rose by 16.7% to reach 1.9038 trillion won. While the battery materials business experienced a positive trend in product sales volume, the adverse effects of diminishing mineral prices weighed heavily on the operating profit. Ecopro’s cumulative sales for the year’s quarter totaled 5.9854 trillion won, with an operating profit of 417.6 billion won.
Delving into the performance of Ecopro’s major subsidiaries for the same quarter, Ecopro BM reported sales of 1.8033 trillion won and an operating profit of 45.9 billion won. Sales observed a commendable 15.4% increase from the previous year. However, the operating profit witnessed a significant dip of 67.6%. While sales of cathode materials for electric vehicles saw growth, declining mineral prices and sluggish demand from downstream industries impacted profitability.
EcoPro HN, recognized as Korea’s sole eco-friendly total solution company, achieved sales of 65.4 billion won and an operating profit of 11.5 billion won. Sales exhibited a 7.9% increase compared to the corresponding period in the previous year, driven by reinforced sales efforts in the fine dust reduction business. Despite this, operating profit experienced an 11.8% decrease. An Ecopro representative acknowledged, “The significant drop in operating profit is attributed to the continuous decline in mineral prices. Difficulties are anticipated to persist in the fourth quarter, prompting us to intensify efforts to address management challenges, including cost reduction.”
In the market, Ecopro concluded trading at 859,000 won, marking a 3.74% increase from the previous day. Ecopro BM, which had reached the upper limit, closed at 284,500 won, reflecting a 4.85% decrease.
