Samsung SDI Posts Record Profit, Driven by Strong EV Demand

Samsung SDI, the firm that produces and sells plasma display panels and secondary cells, announced its second-quarter 2023 results. Despite the continuous slump in semiconductor chips, Samsung SDI, the battery manufacturing and electronics material division of Samsung Electronics, attained the highest second-quarter sales and profit. The report reveals that income for the Energy Business was KRW 5.27 trillion, an increase of KRW 1.985 trillion (29.4%) and KRW 472.3 billion (9.8%) on an annual and quarterly basis.

The operating profit was KRW 388.1 billion, with an operating margin of 7.4%. This shows that there is a significant rise of KRW 143.2 billion, which accounts for 58.5% over the previous year, as well as 22.7% with KRW 71.7 billion over the previous quarter. The strong sales of customers’ high-end automobiles outfitted with P5 batteries led to a rise in revenue and profit for the Automotive and ESS Battery Businesses. Revenues of KRW 5.84 trillion for the second quarter of 2023, with operating profits of around KRW 450.2 billion.

Revenue climbed by 23.2%, and profit rose by 4.8% compared to the same period in 2022. And this is the fourth quarter in a row that Samsung SDI’s revenue has exceeded KRW 5 trillion, which is a clear appearance of great success with an operating margin of 7.7% for the firm. The income generated by the Electronic Materials business was KRW 570.5 billion, compared to KRW 98.7 billion from last year and KRW 13.5 billion from the previous quarter, an increase of around 14.7% and 2.4%, respectively.

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To KRW 62.1 billion in Q2 2023, the operating profit fell by 66%, but the rise of EV sales is anticipated to recover Samsung SDI in Q4 2023. In order to fulfill the demand for vehicle batteries going into the second half, the vehicle and ESS battery businesses intend to engage aggressively. Over 50% of the company’s total prismatic battery sales for electromotive vehicles are projected to be made up of P5.

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Yoon-ho Choi, President and CEO of Samsung SDI, stated that Samsung SDI will continue to secure ‘super-gap’ technological competitiveness, such as solid-state batteries and 46-phi cylindrical batteries, in order to drive our continued growth. We will anchor on ESG management as our future business edge to rise as a global leader in the market.”

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