SK Hynix recorded an operating profit of 346 billion KRW in the fourth quarter of last year, successfully returning to profitability. This marks the end of five consecutive quarters of operating losses that began in the fourth quarter of 2022.
On the 25th, SK Hynix announced its management performance for the fourth quarter of last year, reporting sales of 11.3055 trillion KRW, an operating profit of 346 billion KRW (operating margin 3%), and a net loss of 1.3795 trillion KRW (net loss margin 12%).
This is a surprise performance that exceeded market expectations. The consensus for SK Hynix's fourth-quarter results (average securities firms' forecast) was sales of 10.4447 trillion KRW and an operating loss of 89.6 billion KRW.
SK Hynix explained, "In the fourth quarter of last year, demand for AI servers and mobile products increased, and the Average Selling Price (ASP) rose, improving the memory market environment. Along with this, our ongoing profitability-focused management activities have taken effect, enabling us to record a quarterly operating profit for the first time in a year."
Accordingly, the company reduced the cumulative operating loss that had continued until the third quarter of last year, posting annual results of 32.7657 trillion KRW in sales, an operating loss of 7.7303 trillion KRW (operating loss margin 24%), and a net loss of 9.1375 trillion KRW (net loss margin 28%).
A company official stated, "Sales of our main products, Double Data Rate (DDR)5 and High Bandwidth Memory (HBM)3, increased more than fourfold and fivefold respectively compared to the previous year. However, in NAND, where the market recovery has been relatively delayed, we focused on optimizing investments and costs."
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