Indorama Ventures Public Company Limited (SET: IVL) has announced its 2Q24 consolidated financial statement through the Stock Exchange of Thailand as follows;
| Quarter | 2Q24 | 2Q23 |
| Net Profit (Loss) Million Baht |
-22,995.73 | 411.13 |
| Earning Per Share (Baht) |
-4.1300 | 0.0400 |
| 6 Months | 2024 | 2023 |
| Net Profit (Loss) Million Baht |
-21,862.73 | 1,434.53 |
| Earning Per Share (Baht) | -3.9600 | 0.1900 |
IVL posted 2Q24 revenue of $4.0 billion, a 5% growth QoQ and flat YoY, led by sales volume growth of 3% QoQ and 1% YoY to achieve 3.64MMT in 2Q24. The company posted Adjusted EBITDA of $370 million, representing a growth of 1% QoQ and decrease of 11% YoY.
The company reported a net loss of $637 million in 2Q24, a sharp plunge from a net profit of $12 million in 2Q23. The loss was mainly due to its high impairment loss on property, plant and equipment totaling $692 million, compared to none in the same period of 2023.
The company stated that the macroeconomic environment in the first half of the year continues to be impacted by ongoing supply chain disruptions and high interest rates amid slow growth economies primarily in China and the US, as reflected in their weaker PMI figures.
However, according to the company, volumes grew across all three business segments, signaling the end of a prolonged period of destocking that began in late 2022. Operating rates for the group increased from 74% to 76% in this time period, although still at lower-than-average levels, signifying the weak global economic conditions. On a proforma basis, considering asset optimization actions, operating rates increase to 81%.
Indovinya has seen robust performance with improved spreads and strong demand for the HVA portfolio. The newly renamed Indovida packaging business is also performing solidly due to its leading footprint in emerging markets. On the other hand, industry benchmark spreads for Integrated PET and Lifestyle Fibers remain at depressed levels, impacting total group profitability YoY.
Under the asset optimization program, this quarter management recorded impairment and expense provision of $666 million ($543 million in non-cash). As the company pivots towards the changing industry landscape, these actions will improve the manufacturing efficiency and cost structure of the continued assets. IVL believes that the remaining asset footprint optimizations will not have material impairments going forward.
