Samsung SDI has announced its first-quarter management results, showing significant improvements in both sales and operating profit compared to the same period last year, thanks to the growth in the energy sector.
On the 27th, Samsung SDI reported that the consolidated revenue for the first quarter reached 5.3548 trillion won, with an operating profit of 375.4 billion won.
This marks the highest sales figure ever recorded for the first quarter and exceeds 5 trillion won for three consecutive quarters.
The energy sector saw substantial growth, with the automotive battery segment showing a 44.6% increase in sales and a 91.7% increase in operating profit compared to the previous year.
Overall, sales increased by 1.3054 trillion won (32.2%) compared to the previous year, while operating profit rose by 53.1 billion won (16.5%). However, compared to the previous quarter, sales decreased by 10.2%, and operating profit fell by 23.5%.
The energy division achieved sales of 4.7978 trillion won and an operating profit of 316.3 billion won, representing respective increases of 44.6% and 91.7% compared to last year. However, sales and operating profit were down by 10.2% and 11.9%, respectively, compared to the previous quarter.
Within the medium and large battery segment, automotive batteries maintained their sales growth due to the impact of new model launches from major clients, leading to improved profitability.
Although ESS battery sales were affected by seasonal off-peak periods, they experienced significant growth year-on-year due to increased sales for power applications.
Small batteries saw a decline in sales compared to the previous quarter due to the off-peak season. Cylindrical batteries minimized the impact of reduced demand in electric tools through strategic agreements with key customers. Pouch-type batteries, however, benefited from the launch of flagship new smartphones from major clients.
The electronic materials division reported sales of 557 billion won and an operating profit of 59.1 billion won, down 23.7% and 62.4%, respectively, compared to the previous year. Compared to the previous quarter, sales and operating profit fell by 10.8% and 55.1%.
Due to declining IT demand and seasonal off-peak effects, OLED and semiconductor process materials saw decreases in both sales and profits, although polarizing films maintained sales at the previous quarter’s levels thanks to customer diversification.
For the second quarter, continuous growth and profitability improvements are expected, especially in the medium and large battery segments.
Automotive battery sales of customers are anticipated to continue increasing with the launch of new models, following collaborations with Stellantis and the establishment of a joint venture with GM to accelerate entry into the U.S. market, along with pilot operations of cylindrical 46-p diameter and solid-state battery lines to lead the next-generation battery market. ESS batteries are likely to see significant revenue growth primarily for power applications and UPS.
Small batteries are expected to see increased revenues and improved profitability due to gradual recovery in demand. Cylindrical batteries are also expected to benefit from leveraging partnerships with strategic customers and expanding sales in outdoor power equipment (OPE).
Pouch-type batteries are expected to continue expanding sales due to the effects of new models launched by key customers in the second half.
In the electronic materials sector, while the front-end demand decline is expected to persist, gradual recovery is noted in polarizing films, leading to expected sales expansion in the second quarter. OLED and semiconductor process materials are anticipated to continue facing weakness in IT front-end demand.
Following its membership in RE100 last year, Samsung SDI joined the Global Battery Alliance (GBA) in the first quarter of this year to build a sustainable battery value chain. The company is accelerating its ESG management by participating in global initiatives like the Carbon Disclosure Project (CDP) supply chain for ESG cooperation with partners.
The company plans to assess Scope 3 emissions, which refer to indirect greenhouse gas emissions occurring throughout the value chain, and will disclose the results through a sustainability report in the second quarter, establishing reduction targets and related tasks.
“Despite the rapidly changing global business environment, we achieved the highest-ever quarterly sales and have maintained over 5 trillion won in sales for three consecutive quarters,” said Choi Yun-ho, CEO of Samsung SDI. “We will strive to become a leading global top-tier company by continuously pursuing new orders and investments, securing next-generation battery technologies such as solid-state batteries.”
Lee Sang-jin daedusj@autodiary.kr