PR CENTER > Samsung SDI Announces Third Quarter 2023 Results

Samsung SDI Announces Third Quarter 2023 Results

  • Company announces Q3 revenue of KRW 5.948 trillion, operating profit at KRW 496 billion
  • Achieves 10.8% year-to-year revenue growth, while marking a record quarterly revenue backed by strong automotive battery sales
  • Year-on-year operating profit from prismatic and cylindrical form factors jump over 60%
  • Company anticipates improved year-to-year Q4 results driven by automotive battery sales

SEOUL, Korea – October 26, 2023 – Samsung SDI today reported financial results for the third quarter that ended September 30, 2023.

The company announced that it posted KRW 5.948 trillion in revenue and KRW 496 billion in operating profit in the third quarter of 2023 fiscal year. 

Overview of the Third Quarter 2023 Earnings Results

Propelled by strong sales of automotive batteries, Samsung SDI recorded a new high in its third quarter results. In particular, the operating profit from sales of prismatic and cylindrical batteries for automotive applications jumped over 60% from the same period last year.

Looking at year-over-year figures, the revenue increased by KRW 580.1 billion (10.8%) and the operating profit decreased by KRW 69.9 billion (12.3%). Both revenue and operating profit saw quarter-on-quarter increases by KRW 107.5 billion (1.8%) and KRW 45.8 billion (10.2%), respectively. The company posted an operating margin of 8.3%. 

The Third Quarter Earnings Results by Business

The Energy Business reported KRW 5.338 trillion in revenue, up by KRW 506.1 billion (10.5%) versus the previous year and by KRW 69.7 billion (1.3%) compared to the preceding quarter. The operating profit fell by KRW 73 billion (15.1%) to KRW 411.8 billion but it was a 6.1 percent increase (KRW 23.7 billion) from the last quarter with the operating margin at 7.7%.

In the Automotive & ESS Battery Business, the electric vehicle battery segment recorded the highest profitability, as sales of P5 going into premium vehicles by major customers expanded, owing to the earlier-than-expected completion of the ramp-up at the company’s factory in Hungary. The ESS battery segment saw a slight decline in revenue, due to demand for new products being held up for the fourth quarter.

The Small Battery Business exited the third quarter with similar results to the last quarter. Cylindrical battery sales showed a modest pickup, largely thanks to increased demand for automotive applications, despite influences from slow recovery of demand for power tools. Pouch battery sales declined due to sluggish demand for IT applications. 

The Electronic Materials Business reported KRW 608.2 billion won in revenue, growing by KRW 74.3 billion (13.9%) from a year earlier and by KRW 37.7 billion (6.6%) from three months earlier. The operating profit was KRW 84.2 billion won, up by KRW 3.1 billion (3.8%) year-over-year and by KRW 22.1 billion (35.6%) quarter-over-quarter, posting 13.8% in operating margin. 

Despite the market demand on halt, display materials reported higher revenue and profit as OLED materials and polarizer films enjoyed expanded demand for mobile devices and big screen TVs, respectively. Semiconductor materials, however, came out with a decline in sales due to the slowed demand on major customers’ end.

Business Outlook for the Fourth Quarter 2023

Samsung SDI anticipates the company would continue its growth momentum well into the fourth quarter, attaining improved results both year-on-year and quarter-on-quarter. 

Q4 sales of EV batteries is expected to further expand centering on P5, while ESS battery sales is forecast to grow, pivoting on utility and UPS solutions, in line with expanding sales of new products. With next-generation lineups, Samsung SDI will continue its efforts to win new customers for P6, the company’s next generation product, while it is also set to start full-fledged supplies of solid-state battery samples for customers. 

Although it is forecast that the market situation will remain contracted in the next quarter, the Small Battery Business is bidding to expand the cylindrical battery sales mainly targeting the mobility market for e-bikes and EVs, while planning to seek new business opportunities in South East and West Asia. As for 46-phi batteries, sample supplies for customers will commence in the coming quarter.

With a forecast of recovering market sentiment, the Electronic Materials Business looks to expand sales, improving the profitability down the line. The OLED materials sales is expected to sustain growth into the fourth quarter as mass production of a new platform will begin. The division plans to continue raising the sales of the polarizer film by securing new customers including those in China. Semiconductor materials are also forecast to see higher sales as they are chosen for new applications. 

ESG Management Activities

Since its declaration of environment-friendly management in October last year, Samsung SDI has been delivering strong execution of its eight strategic tasks such as transition to renewable energy, expansion of carbon-labeled products, and reduction of water use. 

In June this year, the company became the first rechargeable battery maker to have two of its products receive carbon footprint labels from Carbon Trust, a U.K. certification agency. In September, all of Samsung SDI’s operations in Korea achieved the highest status of Zero Waste to Landfill certification – the Platinum standard.

In addition to its environmental efforts, Samsung SDI recently obtained the ‘Best’ rating in an assessment of mutually developing relationships with suppliers named ‘Win-Win Index,’ which is conducted by Korea’s Commission for Corporate Partnership. To bolster the supply chain engagement in the ESG practice, the company is providing its key partners with support in calculating their greenhouse gas emissions as well as training on preemptive environmental risk management, enhancing the ESG competitiveness in co-prosperity.

“Amid the headwinds in the business environment, we achieved better results than the previous quarter thanks to the hard work done by everyone involved – employees and partners alike,” said President and CEO Yoon-ho Choi. “Samsung SDI will continue securing ‘super-gap’ technological competitiveness through development of next-generation batteries while expanding qualitative and profitable growth by making unrelenting efforts for customer acquisition.

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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