PR CENTER > Samsung SDI Announces First Quarter 2023 Results

Samsung SDI Announces First Quarter 2023 Results

  • Company announces new highs in first-quarter revenue and operating profit at KRW 5.3 trillion and KRW 375.4 billion
  • Q1 revenue surpasses KRW 5 trillion for three consecutive quarters
  • Energy Business posts 44.6% and 91.7% in year-on-year revenue and operating profit respectively
  • Company anticipates sales and profitability to continue expanding in Q2

SEOUL, Korea – April 27, 2023 – Samsung SDI today reported financial results for the first quarter that ended March 31, 2023.

The company announced that it posted KRW 5.354 trillion in revenue and KRW 375.4 billion in operating profit in the first quarter of 2023 fiscal year.

Overview of First Quarter Earnings Results

It is the highest first-quarter results from Samsung SDI, with its quarterly revenue staying above KRW 5 trillion for three quarters in a row. The company’s Energy Business posted significant growths in both revenue and operating profit compared to the same quarter last year, thanks to the booming electric vehicle battery sales. The Energy Business’ revenue was up 44.6% with its operating profit surging 91.7% as the business’ growth momentum continued.

From the same period last year, the revenue and operating profit increased by KRW 1.305 trillion (32.2%) and KRW 53.1 billion (16.5%), respectively. However, compared to a quarter earlier, both revenue and operating profit declined by 10.2% and 23.5%.

First Quarter Earnings Results by Business

The Energy Business generated a revenue of KRW 4.797 trillion and operating profit of 316.3 billion, up 44.6% and 91.7%, respectively, from the corresponding period last year. Both figures went down 10.2% and 11.9% each from the previous quarter.

The Automotive & ESS Battery Business maintained its upward momentum from the previous quarter, seeing an improvement in profitability, propelled by major customers’ new vehicle model releases equipped with P5 batteries. The sales of ESS batteries was affected by the Q1 seasonality, but managed to obtain a significant growth year over year owing to an increase in the sales of utility solutions.

The Small Battery Business exited the first quarter with a lower revenue than the past quarter as it was a low season for key applications. For cylindrical batteries, in spite of weak demand for power tools, the company’s efforts in mitigating the impact through strategic collaborations with customers proved effective. The pouch battery sales was up owing to the release of a new flagship smartphone model by a major customer.

The Electronic Materials Business posted KRW 557 billion in revenue, which was down 23.7% year on year and 10.8% quarter on quarter. Its operating profit stood at 59.1 billion KRW, decreasing by 62.4% year over year and 55.1% quarter over quarter.

Due to low demand for IT gadgets and seasonality, OLED and semiconductor process materials saw drops in both sales and profits. But the polarizer film sales managed to stay at a similar level to that of the past quarter, as a result of efforts to diversify its customer portfolio.

Business Outlook for the Second Quarter

Samsung SDI forecasts its growth momentum to continue going into the second quarter with its profitability improving, driven by the growth of the Automotive and ESS Business.

As for automotive batteries, the new product launch effect is expected to lead P5 sales in the coming quarter. The company pins high hopes on the recently announced joint venture project with General Motors, along with the ongoing partnership with Stellantis, to accelerate its penetration into the US market. With the planned commencement of production lines for 46-phi and solid-state batteries, Samsung SDI is looking to take the lead in the next-generation battery market. With ESS batteries, the expansion of utility and UPS projects is anticipated to drive growth in sales.

The Small Battery Business expects increases in both revenue and profitability in accordance with gradual recovery of demand. The business unit plans on raising the sales of cylindrical batteries by utilizing existing partnerships with strategic customers and expanding the sales for Outdoor Power Equipment applications. The sales of pouch batteries is expected to continue to expand in line with launches of new smartphone models scheduled in the second half.

As for the Electronics Materials Business, the polarizer film sales is forecast to gradually recover in the second quarter. However, OLED and semiconductor processing materials are likely to see the weak demand for IT products continue.

ESG Management Activities

Samsung SDI’s push for ESG management continues to accelerate after joining the RE100 initiative last year.

In the first quarter, the company joined Global Battery Alliance (GBA) for a sustainable battery value chain and became a member of Carbon Disclosure Project Supply Chain program for better ESG engagement with its supply partners at home and abroad.

In an effort to put ESG into practice actively and preemptively, Samsung SDI is assessing and calculating the scope 3 emissions that encompass indirect emissions from the entire value chain. In the second quarter, the company will disclose the assessment results through the Sustainability Report, and establish goals and tasks to further cut carbon emissions.

“Despite the volatility sweeping across the global business environment, we have managed to achieve the highest-ever revenue in the first quarter, exceeding the KRW 5 trillion mark for three consecutive quarters,” said President and CEO YOONHO CHOI. “Samsung SDI will continue to seek new orders and investments and secure next-generation battery technologies including the solid-state battery, in order to materialize our vision of becoming a market-leading, Global Top Tier company.”

About Samsung SDI

Samsung SDI, headquartered in the Republic of Korea, is a world-leading battery and electronic
material manufacturer redefining the worlds of electric vehicles, energy storage systems and IT
devices. The company drives transformation and innovation to emerge as a ‘Creative Energy and
Materials Solution Leader’ across the fields of e-mobility, energy solutions, as well as semiconductors
and displays. The company commits to sourcing 100% renewable electricity across its entire global
operations by 2050. For the latest news, please visit the Samsung SDI News at

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