Samsung Electronics Achieves Record Annual Revenue of 302 Trillion Won... Q4 Profit Drops 69% (Update)

[Asia Economy Reporter Park Sun-mi] Samsung Electronics recorded a record high annual revenue exceeding 300 trillion won last year but could not smile. The operating profit in the fourth quarter fell by nearly 69% compared to the same period last year, clearly revealing the severity of profitability decline.

On the 31st, Samsung Electronics announced that it achieved a record high annual revenue last year. Revenue reached 302.23 trillion won, and operating profit was 43.38 trillion won. However, the fourth quarter performance last year was at a 'shock' level. Operating profit plummeted. The fourth quarter results on a consolidated basis were revenue of 70.46 trillion won and operating profit of 4.31 trillion won. These figures represent decreases of 7.97% and 68.95%, respectively, compared to the same period last year.

The DS division, responsible for semiconductors, recorded fourth quarter revenue of 20.08 trillion won and operating profit of 270 billion won. Memory performance sharply declined due to a significant price drop amid inventory asset valuation losses and ongoing customer inventory adjustments. System LSI saw a decline in performance due to sluggish sales of key products caused by industry-wide inventory adjustments. Foundry achieved its highest quarterly and annual revenue through expanded sales to major customers, increased production capacity focused on advanced processes, and diversified its customer base, resulting in increased profits compared to the previous year.

The Display business unit, SDC, recorded fourth quarter revenue of 9.31 trillion won and operating profit of 1.82 trillion won. The small and medium-sized display segment saw a decline in performance compared to the previous quarter due to decreased smartphone demand but achieved solid results driven by flagship product sales. The large display segment saw an expansion in QD-OLED sales for TVs during the year-end peak season and a reduction in losses due to LCD inventory depletion.

The DX division, which includes mobile and home appliances, recorded fourth quarter revenue of 42.71 trillion won and operating profit of 1.64 trillion won. Mobile sales and profits both declined due to a slowdown in smartphone sales and weak demand in the mid-to-low-end market. Home appliances also saw profitability decline due to market deterioration and increased costs from intensified competition. However, Harman, which operates the automotive electronics business, achieved its highest performance for two consecutive quarters.