Recently, Seoul Semiconductor, a leading global LED manufacturer, officially announced its Q3 2024 results. During the reporting period, the company sustained revenue and profit growth, driven by the high-margin automotive business and the active implementation of internal operational cost optimization strategies.
Continued Performance Recovery: Automotive Revenue Growth of 20%-30%
After the recovery of profitability in Q2 2024, Seoul Semiconductor‘s revenue continued to grow in Q3 2024, with gross margins rising steadily. Specifically, revenue from the automotive division increased by approximately 20%-30% year-on-year.
In detail, Seoul Semiconductor achieved revenue of $2.31 billion in Q3 2024, marking a 7% increase both year-on-year and quarter-on-quarter.
Profit Margins: Operating Profit Up 6.1% Year-on-Year
Regarding profits, Seoul Semiconductor achieved an operating profit margin of 1.3%, up by 6.1 percentage points year-on-year but down slightly by 0.1 percentage points from the previous quarter. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin was 9%, reflecting a 5.7 percentage point increase year-on-year, although it decreased by 0.8 percentage points compared to Q2 2024.
Continued Margin Growth
Seoul Semiconductor‘s gross profit has been growing steadily since the beginning of this year. In Q3 2024, the company achieved a gross profit of $547 million, with gross margin rising from 19% at the start of the year to 23%, an increase of 6 percentage points compared to the same period last year. The company attributed this increase to a decrease in the ratio of fixed costs as revenue grew.
Additionally, in Q3 2024, Seoul Semiconductor‘s R&D spending was $16.3 million, accounting for 7% of sales.
Outlook for Q4
Looking ahead to Q4 2024, Seoul Semiconductor expects revenue to range from $2.01 billion to $2.31 billion, showing a slight decline compared to Q3 2024.
Currently, Seoul Semiconductor focuses on three major LED application markets: IT backlight products (TVs, monitors, laptops, smartphones, flashlights), automotive products (vehicle displays and lighting), and general lighting. The company anticipates that these three markets will reach a combined scale of $11 billion by 2029.
Among these, Seoul Semiconductor‘s automotive business includes LED products for ADB headlights, HUD displays, and vehicle display screens. The company has already formed partnerships with prominent automotive brands such as Mercedes-Benz, BMW, Audi, Ford, Volkswagen, Tesla, and Volvo.
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