AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the third quarter of 2024(1).
Consolidated revenues in the third quarter of 2024 were NT$77.75 billion, up by 4.6% quarter-over-quarter and up by 10.9% year-over-year. AUO’s net loss attributable to owners of the Company for the third quarter of 2024 was NT$0.93 billion, with a basic EPS(2) of -NT$0.12.
Highlights of consolidated results for the third quarter of 2024
- Revenues of NT$77.75 billion
- Operating loss of NT$0.31 billion
- Net loss attributable to owners of the Company at NT$0.93 billion
- Basic EPS(2) was -NT$0.12
- Gross margin was 10.9%
- Operating margin was -0.4%
- EBITDA(3) margin was 10.6%
Looking back to the third quarter, brand customers prepared for year-end sales promotion with stronger-than-expected pull in, and this has led to a 9.0% quarter-over-quarter increase in revenue for the Display pillar. The Mobility Solution pillar also exhibited robust growth, with a 4.1% increase compared to the previous quarter. Supported by these two pillars, AUO achieved an overall revenue increase of 4.6% quarter-over-quarter. As such, the Company’s financial structure remains at a stable and healthy level. Inventory turnover days were 44 days, while net debt to equity ratio was 33.4%.
Looking forward to the fourth quarter, the year-end sales season restocking demand has gradually subsided. In addition, as some customers make their procurement earlier in the third quarter, the Display pillar is expected to enter into softer seasonal demand. Although Mobility Solution and Vertical Solution pillars may also face the impact from macroeconomic uncertainties and seasonal fluctuations, their relatively stable revenue momentum is expected to mitigate the impact from the Display pillar. Looking forward to the next year, supply/demand environment for the display industry is expected to become healthier. Moreover, the Company currently sees robust order visibility for Mobility Solution and Vertical Solution pillars, which should sustain the growth momentum next year and support AUO's overall operational performance.
(1) All financial information was prepared by the Company in accordance with Taiwan IFRS. On April 2, 2024, AUO completed the acquisition of German company BHTC GmbH (hereinafter referred to as "BHTC") and now holds 100% equity interest in BHTC. Therefore, the financial statements of BHTC were included in AUO’s consolidated financial statements starting from April 2024.
(2) Basic EPS in the third quarter of 2024 was calculated based on the weighted average outstanding shares of the reporting quarter (7,668 million shares).
(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.