Samsung SDI Reports Record Q1 Sales of 5.3 Trillion KRW and Operating Profit of 375.4 Billion KRW

Energy Sector Sales Up 44.6% YoY
Operating Profit Increases 91.7%
Q2 Sales Expansion and Continued Profitability Improvement Expected

Samsung SDI announced its first-quarter business results, showing improvements in both sales and operating profit compared to the same period last year, driven by growth in the battery sector.

On the 27th, Samsung SDI reported consolidated first-quarter sales of 5.3548 trillion KRW and operating profit of 375.4 billion KRW.

This represents the highest first-quarter sales ever recorded and marks the third consecutive quarter with sales exceeding 5 trillion KRW. In particular, the energy division continued its strong growth with sales increasing by 44.6% and operating profit by 91.7% year-on-year, thanks to strong performance in automotive batteries.

Compared to the same period last year, consolidated sales increased by 1.3054 trillion KRW (32.2%) and operating profit rose by 53.1 billion KRW (16.5%). Compared to the previous quarter, sales decreased by 10.2% and operating profit by 23.5%.

The energy division posted sales of 4.7978 trillion KRW and operating profit of 316.3 billion KRW, up 44.6% and 91.7% respectively year-on-year. Compared to the previous quarter, sales and operating profit decreased by 10.2% and 11.9%, respectively.

Among medium- and large-sized batteries, automotive batteries maintained sales growth compared to the previous quarter due to the launch of new models equipped with major customers’ P5, and profitability improved. ESS (Energy Storage System) battery sales were affected by seasonal off-season but grew significantly year-on-year due to increased sales for power applications.

Small batteries saw a decline in sales compared to the previous quarter due to seasonal off-season effects. Cylindrical batteries minimized sales impact through strategic consultations with major customers despite a slowdown in demand for power tools. Pouch batteries increased sales due to the launch of flagship smartphone new products by major customers.

The electronic materials division recorded sales of 557 billion KRW and operating profit of 59.1 billion KRW, down 23.7% and 62.4% year-on-year, respectively. Compared to the previous quarter, sales and operating profit decreased by 10.8% and 55.1%, respectively.

Due to a slowdown in IT demand and seasonal off-season effects, sales and profits of OLED and semiconductor process materials declined, but polarizing films maintained sales at the previous quarter’s level through customer diversification.

In the second quarter, continued growth and profitability improvement are expected, centered on medium- and large-sized batteries.

Automotive batteries are expected to see continued sales growth of P5 due to new model launches by customers. Additionally, following cooperation with Stellantis, Samsung SDI is accelerating its entry into the U.S. market by promoting the establishment of a JV with GM, and is expected to lead the next-generation battery market through the operation of a pilot line for cylindrical 46-pi and all-solid-state batteries. ESS batteries are expected to see significant sales expansion, focusing on power and UPS applications.

Small batteries are expected to see increased sales and improved profitability compared to the previous quarter due to gradual demand recovery. Cylindrical batteries are expected to increase sales by leveraging partnerships with strategic customers and expanding sales for OPE (Outdoor Power Equipment). Pouch batteries are expected to continue expanding sales due to new model launches by major customers in the second half of the year.

The electronic materials division is expected to see continued weakness in front-end demand, but polarizing films are showing gradual recovery, leading to expected sales expansion in the second quarter. OLED and semiconductor process materials are expected to continue facing weak IT front-end demand.

Samsung SDI joined RE100 last year and, in the first quarter of this year, joined the GBA (Global Battery Alliance) to build a sustainable battery value chain. It is accelerating ESG management by participating in global initiatives, including joining the CDP (Carbon Disclosure Project) supply chain for ESG cooperation with partners.

Additionally, Samsung SDI plans to calculate Scope 3, which refers to indirect greenhouse gas emissions occurring throughout the value chain, and disclose the results through a sustainability report within the second quarter, establishing reduction targets and deriving related tasks.

Choi Yoon-ho, CEO of Samsung SDI, said, "Despite the rapidly changing global business environment, we achieved the highest first-quarter sales ever and sales exceeding 5 trillion KRW for three consecutive quarters. We will continue to pursue new orders and investments and strive to become a global top-tier company leading the market by securing next-generation battery technologies such as all-solid-state batteries."

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