Samsung SDI Reports Record Q2 Results with 4.7 Trillion KRW in Sales and 429 Billion KRW Operating Profit

Provided by Samsung SDI

[Asia Economy Reporter Donghoon Jeong] Samsung SDI recorded its highest-ever performance in the second quarter of this year. In particular, its quarterly operating profit exceeded 400 billion KRW for the first time. The first half results are also the best ever.

Samsung SDI announced on the 29th that it recorded sales of 4.7408 trillion KRW and an operating profit of 429 billion KRW in the second quarter of this year. Both sales and operating profit are record highs. Operating profit surpassed 400 billion KRW for the first time. The first half results also achieved the highest performance ever.

Compared to the same period last year, sales increased by 1.4065 trillion KRW (42.2%) and operating profit by 133.8 billion KRW (45.3%). Compared to the previous quarter, sales rose by 691.4 billion KRW (17.1%) and operating profit by 106.7 billion KRW (33.1%).

Sales in the energy sector reached 4.0716 trillion KRW, up 50.1% from the same period last year and 22.7% from the previous quarter. Operating profit was 244.9 billion KRW, up 45.2% year-on-year and 48.4% quarter-on-quarter. The operating profit margin was 6%.

Compared to the previous quarter, sales of medium and large batteries increased and profitability improved. Automotive batteries saw expanded sales of high-value-added products such as Gen5 amid steady demand growth. Additionally, a joint venture contract was signed with Stellantis, and the pilot line construction for all-solid-state batteries proceeded as planned, steadily preparing for mid- to long-term growth. ESS (Energy Storage System) batteries increased sales due to expanded power sales, and profitability improved as raw material cost increases were reflected in product prices.

In the case of small batteries, sales increased mainly for cylindrical batteries, and profitability also improved. Cylindrical batteries grew in sales mainly for electric vehicles and high-power power tools, while pouch batteries saw a decline in sales due to weakened demand for IT products and anticipation of new products in the second half.

Sales in the electronic materials sector reached 669.2 billion KRW, a 7.5% increase compared to the same period last year but an 8.4% decrease compared to the previous quarter. Operating profit was 184.1 billion KRW, up 45.5% year-on-year and 17.0% quarter-on-quarter.

The electronic materials sector improved profitability by expanding high-value-added products compared to the previous quarter. OLED (Organic Light Emitting Diode) materials expanded sales as supply to new platforms began, and semiconductor materials maintained sales at the previous quarter's level. Polarizing films expanded sales focusing on products differentiated from competitors, maintaining profitability.

In the second half of this year, medium and large batteries are expected to continue sales growth centered on high-value-added products. Automotive batteries will see full-scale sales of Gen5 batteries as the Hungary Plant 2 starts operation, and order activities for next-generation platforms will continue. ESS batteries are expected to expand sales due to increased demand for renewable energy amid high oil prices and eco-friendly policies, along with the launch of new power ESS products.

Small batteries are expected to grow sales mainly for mobility applications. Cylindrical batteries are expected to expand sales for mobility such as electric vehicles and electric bicycles. A 46-pi (diameter 46 mm) line is also being established to respond to new electric vehicle projects.

In the second half, electronic materials are expected to expand sales centered on OLED and semiconductor materials. OLED materials will expand sales to major customers and promote entry into next-generation platforms. Semiconductor materials plan to expand sales through timely new product launches, and polarizing films will respond to declining front-end demand by diversifying customers.

Samsung SDI appointed outside director Kim Deokhyun as chairman to operate the newly established 'Sustainability Management Committee' in the first quarter and began full-scale activities. The company held a 'Sustainability Management Council' chaired by the CEO to discuss the company's mid- to long-term sustainability management strategy with key executives and disseminate it to employees.

Samsung SDI published the '2021 Sustainability Report' on its website in the second quarter to inform stakeholders of the company's activities and achievements and strengthen communication.

Choi Yoonho, CEO of Samsung SDI, said, "Despite a difficult management environment with uncertainties in market demand and supply and expanding risk factors, we achieved record-high performance. We will swiftly implement the three management policies and firmly establish future growth foundations such as next-generation platforms and all-solid-state batteries to continue a qualitative growth trend with profitability superiority."

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