AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the fourth quarter of 2022(1).
Consolidated revenues in the fourth quarter of 2022 were NT$52.65 billion, up by 5.9% quarter-over-quarter. AUO’s net loss attributable to owners of the Company for the fourth quarter of 2022 was NT$10.21 billion, with a basic EPS(2) of -NT$1.33.
For the fiscal year of 2022, consolidated revenues totaled NT$246.79 billion, down by 33.4% year-over-year. Net loss attributable to owners of the Company was NT$21.10 billion, with a basic EPS(2) of -NT$2.39.
The total panel area shipment reached around 4.32 million square meters in the fourth quarter of 2022, up by 11.5% quarter-over-quarter and down by 33.6% year-over-year. For the full year of 2022, the total panel area shipment reached around 19.17 million square meters, down by 25.4% year-over-year.
Highlights of consolidated results for the fourth quarter of 2022
- Revenues of NT$52.65 billion
- Operating loss of NT$10.91 billion
- Net loss attributable to owners of the Company at NT$10.21 billion
- Basic EPS(2) was -NT$1.33
- Gross margin was -8.7%
- Operating margin was -20.7%
- EBITDA(3) margin was -6.0%
Highlights of consolidated results for the fiscal year of 2022
- Revenues of NT$246.79 billion
- Operating loss of NT$23.97 billion
- Net loss attributable to owners of the Company at NT$21.10 billion
- Basic EPS(2) of -NT$2.39
- Gross margin was 0.6%
- Operating margin was -9.7%
- EBITDA(3) margin was 3.0%
Looking back at 2022, the Company’s operations faced severe challenges. The demand from the robust stay-at-home economy in the past two years had gradually faded. Additionally, war, inflation and rising interest rates led to lackluster end-market demand and this, combined with high channel inventory, led to a sudden slump in panel demand from brand customers. As a result, the Company’s revenues were NT$246.79 billion in 2022, a decline of 33.4% year-over-year. The profitability also turned into a loss in 2022 from an all-time high in 2021, with a net loss attributable to owners of the Company of NT$21.10 billion. However, the management team has strived to maintain AUO’s financial structure at a stable and healthy status, where inventory turnover days were 48 days for the fourth quarter, a decrease of 6 days quarter-over-quarter, while net debt to equity ratio was 3.3 %, which is at a healthy level.
Looking forward to 2023, global economy is forecast to grow marginally or even to decline, which makes it still a year of great challenges. While we face numerous macro uncertainties, the Company will actively improve its management efficiency, as well as continue to carefully control its cash flow and expenses. Furthermore, the Company will accelerate implementing its “Biaxial Transformation” strategy, in order to have a better performance in vertical businesses, and to deliver more stable operating results amid panel industry cyclicality.
(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the fourth quarter of 2022 was calculated based on the weighted average outstanding shares of the reporting quarter (7,661 million shares). Basic EPS in the fiscal year of 2022 was calculated based on the weighted average outstanding shares of the reporting year (8,819 million shares).
(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.