CATL saw 82% profit increase in the first half of 2022
The Chinese battery-maker CATL was able to increase its net profit in the first half of 2022 by around 82 per cent compared to the same period last year to 8.17 billion yuan. That is the equivalent of 1.19 billion euros.
Revenue rose 156 per cent to 112.97 billion yuan or 16.5 billion euros. CATL’s gross margin was 18.68 per cent, up 4.2 percentage points from the first quarter of 2022 – but that was a record low. From 2019 to 2021, CATL’s gross margin had been 29.06 per cent, 27.76 per cent and 26.28 per cent, respectively. The squeezed margins were caused by the recent sharp rise in raw material prices that CATL could not pass on directly to customers.
At an investor relations event, CATL said it had largely concluded negotiations with most of its customers on price increases for the second quarter. Discussions with some customers in the energy storage sector were still ongoing about price adjustments.
The company made gains in the second quarter, especially in profitability: in Q1, sales were 48.68 billion yuan and net profit was 1.49 billion yuan. In Q2, it was already 64.29 billion yuan in revenue and 6.68 billion yuan in net profit. Only in Q4 2021 had the company earned more with 8.18 billion yuan profit generated from 56.99 billion yuan revenue.
The good business figures are hardly surprising. An analysis of the first half of the year published by the South Korean market research company SNE Research at the beginning of August, showed that the market leader CATL was able to expand its market position in EV batteries even further. In the first half of the year, CATL’s market share was 34.8 per cent, up from 32.6 per cent in 2021 as a whole. The company’s growth becomes particularly clear when looking at capacity: in 2021, CATL was able to sell 96.7 GWh of battery cells; after only six months in 2022, the figure was already 70.9 GWh.
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