Samsung Electronics Q2 Revenue 77 Trillion KRW, Operating Profit 14 Trillion KRW... Decline from Q1 (Update)

[Asia Economy Reporter Park Sun-mi] Samsung Electronics failed to achieve its highest-ever quarterly performance, recording provisional sales of 77 trillion won in the second quarter of this year.

On the 7th, Samsung Electronics announced its provisional results for the second quarter of this year, reporting consolidated sales of 77 trillion won and operating profit of 14 trillion won. Compared to the same period last year, sales and operating profit increased by 20.94% and 11.38%, respectively, but both declined by 1% and 0.85% compared to the first quarter.

At the time of the first quarter results announcement, which was traditionally a seasonal off-season for the electronics and semiconductor industry, the growth rates for sales and operating profit were 18.9% and 50.5%, respectively.

Thus, Samsung Electronics' streak of record quarterly performances came to a halt in the second quarter of this year. Since achieving its highest-ever sales record of 73.98 trillion won in the third quarter of last year, Samsung Electronics posted 76.57 trillion won in the fourth quarter and 77.78 trillion won in the first quarter of this year, setting maximum sales records for three consecutive quarters.

The second quarter results also fell short of market expectations. According to financial information firm FnGuide, securities firms had projected a consensus for Samsung Electronics' second quarter performance this year at sales of 77.2218 trillion won and operating profit of 14.6954 trillion won.

The underwhelming performance is analyzed to have been largely influenced by changes in the global economic environment, including the Russia-Ukraine war, lockdowns in China due to COVID-19, inflation, interest rate hikes, and economic growth slowdown, which affected consumer sentiment and led to weak demand for smartphones and home appliances.