Samsung SDI Reports Q1 Operating Profit of 133.2 Billion KRW, Up 147% Year-on-Year (Update)

Samsung SDI Cylindrical Battery

[Asia Economy Reporters Heungsun Kim and Suyeon Woo] Samsung SDI announced on the 27th that its operating profit for the first quarter of this year, on a consolidated basis, was tentatively estimated at 133.2 billion KRW, an increase of 146.74% compared to the same period last year. Sales reached 2.9632 trillion KRW, up 23.59% year-on-year. Net profit soared by 24,477.91% to 150 billion KRW.

By segment, sales in the energy (battery) division amounted to 2.387 trillion KRW, up 32.9% compared to the same period last year. However, this was a 9.2% decrease compared to the previous quarter. Samsung SDI explained that compared to the previous quarter, sales of automotive batteries among medium and large batteries declined due to the seasonal off-season, and sales of energy storage systems (ESS) also decreased due to the expiration of the domestic REC (Renewable Energy Certificate) weighting.

For small batteries, sales of cylindrical batteries increased due to higher demand for wireless power tools, maintaining sales at the previous quarter’s level, but pouch battery sales declined due to weak overseas demand.

Sales in the electronic materials division were 576.2 billion KRW, down 4.3% year-on-year and 7.4% quarter-on-quarter. Compared to the previous quarter, semiconductor materials saw a slight increase in sales, and polarizing films maintained sales at the previous quarter’s level amid strong demand for large TVs. However, sales of organic light-emitting diode (OLED) materials decreased due to seasonal factors.

Samsung SDI expects performance across all business divisions to improve in the second quarter. Medium and large batteries are anticipated to see expanded sales and improved profitability.

The company forecasts increased sales of automotive batteries to Europe and expanded supply of ESS focused on power projects in the Americas. Small batteries are expected to see sales growth entering the peak season, with cylindrical batteries beginning supply to new electric vehicle projects and increased sales for micro-mobility and vacuum cleaner applications. Pouch batteries are projected to expand supply mainly for entry-level smartphone models.

Additionally, electronic materials are expected to see steady sales growth compared to the previous quarter, with polarizing films and OLED materials anticipated to increase sales due to rising demand. Semiconductor materials are also expected to continue sales growth driven by increased wafer input from key customers.

This content was produced with the assistance of AI translation services.