Samsung SDI Achieves Record Q2 Performance with 5.8 Trillion KRW in Sales and 450.2 Billion KRW Operating Profit

Sales Increased by 23.2% Year-on-Year
Operating Profit Rose by 4.9%

Samsung SDI announced on the 27th that it achieved sales of KRW 5.8406 trillion and an operating profit of KRW 450.2 billion in the second quarter of this year. This marks the highest sales and operating profit ever recorded for the second quarter, and sales exceeded KRW 5 trillion for four consecutive quarters.

Compared to the same period last year, sales increased by 23.2% and operating profit by 4.9%. Compared to the previous quarter, sales rose by 9.1% and operating profit by 19.9%. The operating profit margin was recorded at 7.7%.

Looking at each business division, battery segment sales reached KRW 5.2701 trillion, up 29.4% year-on-year and 9.8% quarter-on-quarter. Operating profit was KRW 388.1 billion, increasing 58.5% year-on-year and 22.7% quarter-on-quarter. The operating profit margin was 7.4%.

Samsung SDI's PRiMX Battery
Photo by Samsung SDI

Among medium and large batteries, automotive batteries saw increased sales and profits due to the expansion of premium vehicle sales by major customers equipped with P5 batteries. ESS batteries expanded sales centered on power and UPS applications after the seasonal off-season. Small batteries achieved solid performance centered on cylindrical batteries. Cylindrical batteries improved sales and profitability as sales expanded mainly for high-power products. Pouch-type batteries saw a slight decrease in sales due to weakened demand for IT products.

The electronic materials division recorded sales of KRW 570.5 billion, down 14.7% year-on-year but up 2.4% quarter-on-quarter. Operating profit was KRW 62.1 billion, down 66.3% year-on-year but up 5.3% quarter-on-quarter. The operating profit margin was 10.9%. While semiconductor material sales declined due to continued IT demand slowdown, sales of polarizing films gradually recovered, leading to a slight improvement in the electronic materials division's performance.

Growth Expansion Expected in Second Half Centered on Electric Vehicles and ESS

Although uncertainties exist due to the slowdown in global economic growth, the battery market is expected to expand centered on electric vehicles and ESS. Samsung SDI anticipates continued growth as sales and profits increase across all business divisions. Among medium and large batteries, automotive batteries will respond promptly to customer demand through the operation of a new line in Hungary. The P5 battery is expected to drive performance growth, accounting for over 50% of prismatic automotive battery sales. ESS batteries are expected to expand sales centered on power applications with the launch of new products.

Small batteries are expected to expand sales and grow profits centered on micro-mobility (M-Mobility) such as electric bicycles and electric vehicles. Although demand recovery in the power tool market is delayed, Samsung SDI plans to promote expansion into new applications. The electronic materials division is expected to continue increasing sales centered on display materials such as polarizing films and OLEDs, improving profitability compared to the first half. Semiconductor materials are expected to gradually recover demand, and sales will be expanded through new product introductions.

Securing Future Growth Engines

Samsung SDI is steadily preparing future growth engines to secure a leading position in the next-generation battery market alongside active order-taking activities. Recently, Samsung SDI signed an MOU for the construction of the second plant of StarPlus Energy, a joint venture (JV) with Stellantis. Including the JV with GM, signed in April, and StarPlus Energy plants 1 and 2, Samsung SDI has secured an annual production capacity of approximately 100 GWh in the U.S. by 2027. Samsung SDI has completed the setup of a pilot line for all-solid-state batteries and produced development prototypes, and has also started pilot production on a 46-pi cylindrical battery line.

Based on its mid- to long-term business strategy, Samsung SDI plans to continue order-taking and investment activities commensurate with market growth. In the second quarter, Samsung SDI completed the calculation of Scope 3, which refers to indirect greenhouse gas emissions generated throughout the entire value chain. It also pursued key tasks for eco-friendly management, such as obtaining carbon footprint certification for battery products?the first in the secondary battery industry?from the UK eco-certification body Carbon Trust.

Samsung SDI published its 'Sustainability Management Report 2023,' detailing its ESG management activities and achievements, on its website. Yoonho Choi, CEO of Samsung SDI, said, "Despite the global economic slowdown, we recorded the highest-ever sales for the second quarter and surpassed KRW 5 trillion in sales for four consecutive quarters." He added, "Samsung SDI will secure ultra-competitive technological advantages such as all-solid-state batteries and 46-pi cylindrical batteries to ensure sustainable growth." He further stated, "We will strive to grow as a global leader by making ESG management a future corporate competitiveness."

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