Solus Advanced Materials reported an increase in revenue for the third quarter of this year, driven by growth in its battery foil and organic light-emitting diode (OLED) businesses, but it continued to face operating losses.
On November 12, Solus Advanced Materials announced that its consolidated revenue for the third quarter reached 125.5 billion won, with an operating loss of 30.1 billion won. Revenue increased by 83.1% compared to the same period last year (68.5 billion won), but the operating loss widened from 26 billion won in the previous year.
By business segment, battery foil revenue surged to 91.6 billion won, marking a 151.6% increase from 36.4 billion won in the same quarter last year, achieving the highest quarterly revenue to date. This growth was driven by increased demand from global battery and electric vehicle customers.
However, energy costs rose significantly, with the average electricity price on the Hungarian Power Exchange (HUDEX) increasing from 109.2 euros per megawatt-hour in the second quarter to 151.1 euros in the third quarter, a rise of about 38%. Increased costs, including depreciation, also impacted profitability.
The OLED business also achieved record quarterly revenue, with third-quarter sales reaching 33.9 billion won, up 5.6% year-on-year and 26.0% from the previous quarter. The expansion of R-prime supply for mobile devices and increased HBL supply due to the resumption of smartphone production by Chinese clients were key factors.
Solus Advanced Materials aims to maintain its overall revenue growth while accelerating profitability improvements in its battery foil business. To this end, the company is negotiating price increases with most of its battery foil customers. Agreements have already been reached with some major clients, and the increased prices are expected to be reflected in the fourth-quarter results. Negotiations with remaining customers are ongoing, with plans for further gradual price increases next year.
Additionally, Solus Advanced Materials anticipates that changes in market conditions, particularly in Europe and North America, will present new growth opportunities for its battery foil business.
In Europe, the European Commission is strengthening its 'Made in Europe' policy through the Industrial Acceleration Act (IAA), which encourages local production and supply chain development. This policy direction is expected to enhance the competitiveness of companies with local production capabilities.
In the North American market, the growing demand for energy storage systems (ESS) is emerging as a new growth opportunity. As the battery market expands from electric vehicles to ESS due to increased energy storage demand and infrastructure development, the company plans to actively respond to changes in customer demand.
CEO Kwak Geun-man stated, "We plan to complete negotiations for price increases with our battery foil customers without any issues and respond flexibly to market changes, such as the growing demand for electric vehicles in Europe and ESS in North America. We will focus on continuously improving profitability through sequential price increases next year and achieving a turnaround to profitability."
* This article has been translated by AI.
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