Samsung SDI Achieves Record High Sales of 22.7 Trillion KRW and Operating Profit of 1.6 Trillion KRW Last Year

Q4 Sees Decline in Both Sales and Operating Profit

Samsung SDI Giheung Headquarters view. Photo by Samsung SDI

Samsung SDI recorded its highest-ever sales last year, reaching KRW 22.7083 trillion. However, operating profit slightly declined to KRW 1.6334 trillion due to a slowdown in the battery market in the second half of the year.

On the 30th, Samsung SDI announced through a disclosure that sales increased by KRW 2.5842 trillion (12.8%) compared to the previous year. Operating profit decreased by KRW 174.6 billion (-9.7%) during the same period. The growth of the automotive battery business drove the record-high performance. The automotive battery business saw a 40% increase in sales and a 93% rise in operating profit compared to the previous year.

However, the fourth-quarter results showed a downward trend due to the deteriorating battery market conditions. Fourth-quarter sales were KRW 5.5648 trillion, down KRW 401.1 billion (-6.7%) compared to the same period last year, and operating profit was KRW 311.8 billion, a decrease of KRW 179 billion (-36.5%).

Battery division sales amounted to KRW 4.9983 trillion, down KRW 343.3 billion from the same period last year. Operating profit was KRW 226.1 billion, a decrease of KRW 133 billion compared to the previous year. The operating profit margin was 4.5%. Medium-to-large batteries maintained sales at levels similar to the previous quarter. Automotive batteries saw increased sales as the P5 product, installed in premium vehicles, continued to expand. ESS (Energy Storage System) batteries experienced a decline in sales due to reduced power sales. Operating profit declined quarter-on-quarter due to short-term profit impacts from raw material price drops.

Small batteries were affected in sales and operating profit due to delayed demand recovery in power tools, micro-mobility, and IT products, leading to increased market inventory. The electronic materials division recorded sales of KRW 566.5 billion, down KRW 57.8 billion from the same period last year. Operating profit decreased by KRW 46 billion to KRW 85.7 billion. The electronic materials division saw continuous sales growth through mass production of new OLED material platforms, and semiconductor materials increased sales and profitability quarter-on-quarter due to market demand recovery and new product launches. Polarizing film sales declined due to weakening demand.

During the conference call, Samsung SDI outlined its management plan for this year, stating, "We plan to expand sales of new products in the medium-to-large battery segment," and added, "We will officially start mass production of the high-capacity premium battery P6 for automotive batteries to drive sales growth and improve profitability."

Regarding this year's market outlook, Samsung SDI said, "The automotive battery market is expected to grow about 18% year-on-year to approximately USD 184.8 billion (about KRW 245.8209 trillion) this year," and added, "Although short-term growth is expected to slow due to continued high interest rates and economic recession, growth recovery in the second half is anticipated due to prospects of interest rate cuts." Samsung SDI also plans to prepare LFP (Lithium Iron Phosphate) products to meet market demand.

Choi Yoon-ho, CEO of Samsung SDI, said, "Despite the global economic downturn last year, we achieved meaningful results by growing sales and improving profitability in our core electric vehicle battery business and securing a future foundation for sustainable growth." He added, "This year, we will continue to pursue qualitative growth with profitability advantages based on 'superior technology competitiveness, cost innovation, and expansion of new customers.'"

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