CAMT reports profits for a 17th consecutive quarter

[Courtesy of Cosmo Advanced Materials & Technology Co.]

Cosmo Advanced Materials & Technology Co. (CAMT), which specializes in secondary battery materials, is maintaining its momentum even as it faces industry challenges stemming from a downturn in demand in the electric vehicle market.

According to the company‘s announcement on Monday, CAMT reported an operating profit of 5.3 billion won ($3.9 million) in the first quarter of 2024, or an 18.4 percent decrease compared to the same period the year before. Sales were down by 35.9 percent, amounting to 122.1 billion won during the same period, but net profit surged by 49.9 percent to 4.6 billion won.

Despite the dip in operating profit in the first quarter, CAMT stands out among secondary battery material companies as the sole entity to achieve both operating and net profits for two consecutive quarters. While other South Korean secondary battery material firms, such as EcoPro BM Co., faced significant losses in the fourth quarter of 2023, CAMT was the industry’s sole profitable player. The company attributed its success to a “profit-oriented management approach” that emphasized cost reduction strategies and a focus on the comparatively high-margin secondary battery cathode materials business over the existing multilayer ceramic capacitor (MLCC) film business, with the company asserting that “we have been profitable for 17 consecutive quarters since 2020.”

CAMT has been investing to expand its annual production capacity for cathode active materials used in secondary batteries to 100,000 tons since June 2023, which it anticipates completing in the first half of 2024. Once it achieves this goal, the company expects to increase its production capacity fivefold compared to 2023, which in turn will lead to significant sales growth.

It is also mapping out its plans to expand overseas into North America and Europe after it completes its domestic investments. As electric vehicle production levels surge, CAMT is poised to become a major global player in the secondary battery materials industry. The company also reaffirmed its commitment to “continuing to pursue profitability-oriented solid management.”