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Yageo reported its first-quarter results of 2021

2021/04/22

Yageo Corporation (2327 TW) today announced its first-quarter results of 2021. Net consolidated sales reported NT$ 23,749 million, up 6.9% q-o-q and up 136.9% y-o-y, respectively. Net consolidated profits after tax attributable to parent company in the first quarter reported NT$ 5,024 million, up 35.5% q-o-q and up 113.8% y-o-y, respectively, or NT$ 10.17 earnings per share. Gross margin rate posted 39.1%, up 1.1% percentage point q-o-q but down 1.2% percentage point y-o-y, respectively. The operating profit reached NT$ 6,044 million with 25.5% operating profit margin rate, up 2.6% percentage point q-o-q but down 0.1% percentage point y-o-y, respectively. Non-operating items posted a net gain of NT$ 434 million in the first quarter, including realized and unrealized net gain on foreign exchange NT$ 444 million, investment income under equity method NT$ 93 million, net interest cost NT$ 65 million, and other net loss of NT$ 38 million.

 

Consolidated sales of first-quarter hit the second high record in company history and earnings per share of first-quarter reached at recent 10 quarters high, attributed to the synergy of post KEMET merger, gradual improvement in production and capacity utilization in Greater China plants, and strong demand from overall customers.

 

After Yageo merged with KEMET and Pulse, the company's operation has undergone structural changes, both product portfolios and end segments are superior to its peers. In the past, Yageo mainly produced commodity-related products. After recent global mergers and internal optimization of product mix, the company’s operation has greater exposure to the high-end specialty and customized products, which can effectively reduce the potential impact from cyclical fluctuations. The company will continue to focus on high-end automotive, industrial, medical, aerospace, and 5G/IoT segments and deliver even stable revenue and profitability growth in the future.

 

Meanwhile, Yageo has positively increased and maintained higher capacity utilization rate in the Greater China plants to meet customers’ solid demand. Yageo will stay vigilant for the challenging environment while the global COVID-19 pandemic has not eased and the trade frictions remain uncertain, and keep prudently optimistic to its sales and operation outlook.

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