L&F achieved a record quarterly shipment performance on expanding sales of high-nickel cathode materials. The company said on Wednesday it posted second-quarter revenue of 885 billion won and operating profit of 20.8 billion won. Revenue rose 70.2 percent from a year earlier and 19.7 percent from the previous quarter. Operating profit returned to the black from an operating loss of 121.1 billion won a year earlier. The operating margin was 2.4 percent.

Shipment volume drove the sales increase. L&F recorded its biggest-ever quarterly shipment performance this quarter. Revenue in the previous quarter was 739.6 billion won, and revenue a year earlier was 520.1 billion won. Higher selling prices for cathode materials also contributed, widening the revenue increase. Both sales volume and prices rose at the same time.

Stable sole supply of Ultra-HINI (ultra high-nickel) products and the effect of 46-diameter products for a new North American customer drove the shipment increase. The company said the 46-diameter products are expanding its presence in the next-generation cylindrical battery market, including by recording sales that exceeded plans set at the start of the year.

Profitability indicators deteriorated on a quarterly basis. Operating profit fell 82.2 percent from 117.2 billion won in the previous quarter. It reflected one-off factors such as initial costs for new businesses and inventory valuation losses. The company said the operating margin of its NCM (nickel-cobalt-manganese) cathode materials business, excluding one-off factors, recovered to the mid-single-digit level.

Net profit was tallied at 52.9 billion won, and net profit attributable to owners of the parent was 53.3 billion won. Both swung to profit from net losses in the previous quarter and a year earlier. Profit from continuing operations before income taxes also returned to the black at 47.1 billion won. It recorded pretax losses of 55.5 billion won in the previous quarter and 145.2 billion won a year earlier.

Results for the first half also improved. Cumulative revenue rose 83.6 percent from a year earlier to 1.62 trillion won, and cumulative operating profit was 138.0 billion won, swinging to profit from an operating loss of 261.4 billion won a year earlier. Cumulative net profit still posted a net loss of 12.3 billion won. That was down 94.5 percent from a net loss of 223.8 billion won a year earlier. Cumulative net loss attributable to owners of the parent also narrowed 94.6 percent to 12.0 billion won.

New NCM volumes will be added in the third quarter. That is because a single-crystal high-nickel project for a new North American customer will begin. L&F said, "While stable sole supply of Ultra-HINI products continues, a single-crystal high-nickel project for a new North American customer will newly begin, and we expect to renew the record for quarterly maximum shipment performance once again," and added, "We also expect annual shipments of NCM cathode materials this year to significantly exceed plans set at the start of the year."

Its LFP (lithium iron phosphate) cathode materials business has completed the commercialization stage and entered the production and supply stage. L&F completed shipments of prototypes to multiple customers and will step up supply of LFP products for North American ESS (energy storage systems) from the end of the third quarter. That means its two-track growth strategy based on NCM and LFP is moving into the execution stage.

Its LFP shipment plan was also raised. Customer demand significantly exceeded the initial plan. The company forecast LFP shipments this year will surpass plans set at the start of the year. It also presented a 전망 that stable shipments of more than 50,000 tons will be possible in 2027. It plans to make LFP a new growth pillar.

Ryu Seung-heon (류승헌), L&F CFO, said, "The second quarter was a quarter in which we achieved maximum quarterly shipment performance and once again proved competitiveness in the high-nickel market," and added, "In the third quarter, as a new single-crystal high-nickel project and LFP supply for North American ESS are ramped up in earnest, the foundation for two-track growth centered on NCM and LFP will accelerate, and we will continue differentiated results."