Samsung Electronics Achieves Another Record Quarterly Performance... Second-Quarter Operating Profit Soars 1,810%

Second-Quarter Sales Reach 171 Trillion Won, Operating Profit Hits 8.94 Trillion Won
Operating Profit Would Exceed 10 Trillion Won Excluding Bonus Provision

Samsung Electronics achieved an operating profit of 8.94 trillion won in the second quarter of this year, continuing its record-breaking performance for the third consecutive quarter.

On July 7, Samsung Electronics announced in a regulatory filing that its consolidated sales for the second quarter of this year were tentatively estimated at 17.1 trillion won, with an operating profit of 8.94 trillion won.

Yonhap News Agency

Compared to the previous quarter, sales increased by 27.74% and operating profit rose by 56.21%. Year-on-year, sales jumped by 129.31%, while operating profit soared by 1,810.26%.

The operating profit slightly surpassed the market consensus of 8.5 trillion won. The market attributes this to a one-off bonus provision of approximately 1.6 trillion won in the semiconductor division. Some analysts suggest that excluding this bonus provision, the second-quarter operating profit would have exceeded 10 trillion won, marking a significant earnings surprise.

With this, Samsung Electronics has achieved record-high sales and operating profit for three consecutive quarters, starting from the fourth quarter of last year. Notably, the operating profit for a single quarter has already more than doubled the full-year operating profit for last year (4.3061 trillion won).

Although the breakdown by business division was not released on this day, it appears that the Device Solutions (DS) division, which is responsible for the semiconductor business, drove the company’s overall earnings growth, as the global competition to secure memory inventory has strengthened price negotiating power.

Industry experts expect the positive momentum in the memory business to continue at least until next year, supported by a sharp increase in server DRAM prices since June, favorable foreign exchange effects, and solid server demand. Recently, Samsung Electronics became the first in the world to mass-produce and ship sixth-generation High Bandwidth Memory (HBM4), further increasing the proportion of high value-added products in its portfolio.

In contrast, the Device eXperience (DX) division, which handles finished products, is expected to have delivered relatively weak results due to a contraction in the set business caused by rising prices for components such as memory.

The provisional figures are estimated based on the Korean International Financial Reporting Standards (IFRS) and are provided for the convenience of investors before the completion of the final settlement.

Meanwhile, Samsung Electronics plans to collect questions in advance from investors regarding business performance and other management matters, and will address topics of high shareholder interest during its earnings conference call to strengthen communication and enhance investor understanding.

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