Samsung C&T Corporation Reports Q2 Operating Profit of 425 Billion KRW, Highest Quarterly Performance

Leading Performance Growth in Corporate, Fashion, and Resort Sectors
'7.5 Trillion KRW Orders in H1' Construction Sector Expected to Improve Performance from H2

[Asia Economy Reporter Ki-min Lee] Samsung C&T achieved its highest quarterly operating profit in the second quarter of this year, driven by a global economic upturn and improved performance in its trading and fashion divisions.

Samsung C&T announced on the 28th that its consolidated second-quarter sales reached KRW 8.548 trillion, with an operating profit of KRW 425 billion. Compared to the same period last year, sales increased by 18.3% and operating profit surged by 78.5%. These figures significantly exceeded the securities industry average compiled by financial information provider FnGuide, which estimated sales of KRW 7.8366 trillion and operating profit of KRW 322.5 billion. The operating profit marks the highest quarterly performance since the merger of Samsung C&T and Cheil Industries in September 2015.

Samsung C&T explained that sales growth was supported by rising raw material market prices and a recovery in domestic consumer sentiment. Operating profit increased due to strong trading sales in the trading division, improved operating profit margins in the fashion division, and higher factory utilization rates at its subsidiary Samsung Biologics.

By division, notable improvements were seen in the trading, fashion, and resort sectors.

The trading division’s second-quarter sales rose 42.2% to KRW 4.297 trillion, and operating profit soared 592.3% to KRW 90 billion. Strong performance was recorded across all business units including chemicals, steel, energy, materials, and consumer industries, driven by increased trading volumes and rising prices of key raw materials. Particularly, the trading division’s first-half sales reached KRW 8.075 trillion and operating profit KRW 174 billion, surpassing the annual pre-pandemic performance with just half-year results.

The fashion division recorded sales of KRW 444 billion, up 17.8%, supported by recovering domestic consumer sentiment and strong sales of imported and online products. Operating profit jumped 4200% from KRW 1 billion in the second quarter last year to KRW 43 billion.

The resort division also saw sales increase by 8.2% to KRW 736 billion and operating profit rise 300.0% to KRW 24 billion, driven by a recovery in leisure industry demand and strong golf business performance.

However, the construction division’s performance declined slightly as major large-scale construction projects were completed. Sales fell 6.4% to KRW 2.659 trillion, and operating profit decreased 23.6% to KRW 113 billion.

Nevertheless, construction orders in the first half reached KRW 7.5 trillion, accounting for 70% of the annual forecast, suggesting performance is expected to improve from the second half.

A Samsung C&T official stated, "In the second half, we will continue to focus on execution to enhance business competitiveness and quality, and pursue annual goals through strategies suited to the management environment. Although external uncertainties such as the resurgence of COVID-19 remain, we will strive to maintain solid performance by strengthening competitiveness through execution in each business division."

He emphasized, "To secure future growth engines, we will continuously expand our business portfolio and actively pursue new businesses and key ESG (Environmental, Social, and Governance) activities to prepare for changes in the external environment."

Meanwhile, Samsung C&T announced the establishment of a KRW 150 billion 'Life Science Fund' on the same day. This fund will invest in next-generation bio venture companies, with Samsung C&T contributing KRW 99 billion, Samsung Biologics KRW 49.5 billion, and Samsung Venture Investment Corporation, the fund manager, KRW 1.5 billion.