LOTTE Energy Materials posts record third-quarter revenue of 289.7 billion won; operating losses continue

[Financial News] LOTTE Energy Materials posted its highest-ever quarterly revenue in the third quarter of this year, driven by expanded copper foil supplies to North American energy storage systems (ESS) and automakers. However, its operating loss widened from the previous quarter to 21.3 billion won.
LOTTE Energy Materials said on the 5th that it recorded consolidated revenue of 289.7 billion won and an operating loss of 21.3 billion won in the third quarter of this year. Revenue rose 102% year on year and 49% from the previous quarter.
The operating loss narrowed from 34.3 billion won in the same period last year but increased by 4.4 billion won from 16.9 billion won in the previous quarter. LOTTE Energy Materials said this was due to costs incurred to stabilize initial production after the new Malaysia Plant 5 began operations. However, its operating margin improved from -8.7% in the previous quarter to -7.3%.
Net income was 70.4 billion won, marking a return to profitability. This reflected a gain on disposal of 111.1 billion won from the sale of Ecowell.
Revenue growth was driven by expanded supplies of copper foil for ESS in North America and increased shipments of battery copper foil to North American automakers. LOTTE Energy Materials said rising demand among its North American customers for non-Chinese materials also contributed to revenue growth.
LOTTE Energy Materials plans to improve profitability next year by increasing the share of high-value-added products. In its battery copper foil business, it will establish a production system at its Malaysia Plants 1 through 6 and expand production of 6-micrometer copper foil for ESS.
The company will also expand its circuit foil business, which serves applications including AI data centers. LOTTE Energy Materials plans to increase circuit foil sales next year to at least twice this year's level and raise the share of high-value-added products, such as ultra-low-profile copper foil (HVLP), to at least 50% of total circuit foil sales. It also aims to increase annual circuit foil production capacity from 6,700 tons this year to 16,000 tons next year.
Kim Yeon-seop, CEO of LOTTE Energy Materials, said, “The battery copper foil and circuit foil markets are entering a supply-shortage phase,” adding, “We will make next year the first year of a transition to an earnings structure centered on high-value-added products.”

[email protected] Kim Mi-hee Reporter