Corporate Analysis by Korea CXO Institute
Group Sales Estimated at 397 to 402 Trillion Won
Second Highest After 418 Trillion Won in 2022
Samsung Electronics Expected to Recover to 200 Trillion Won in Sales
Samsung Heavy Industries Sales Increase by 24.8%
The corporate analysis specialist 'Korea CXO Institute' announced on the 20th that it predicted the total sales of major Samsung Group affiliates last year to reach around 400 trillion won. This is the second-highest amount since 418 trillion won was recorded in 2022.
According to the survey results, the sales scale of 21 major Samsung affiliates, including Samsung Electronics, whose data was available as of the 19th, was 388 trillion won last year. Including about 40 affiliates whose disclosures have not yet been made, the institute expected the total group sales to be between 397 trillion and 402 trillion won.
In particular, Samsung Electronics' standalone financial statement-based sales last year were 209 trillion won, nearly matching the 211 trillion won recorded in 2022, indicating a recovery to the 200 trillion won sales level. Last year's consolidated sales were also 300.8709 trillion won, the second highest after 302.2313 trillion won in 2022. Both standalone and consolidated sales of Samsung Electronics last year were evaluated to have risen to levels almost as high as the record highs set in 2022.
There were seven members in the 10 trillion won sales club within Samsung Group as of last year. The 10 trillion won sales club in Samsung Group last year included Samsung Electronics, Samsung Life Insurance (27.0174 trillion won), Samsung Display (25.4014 trillion won), Samsung C&T Corporation (22.9132 trillion won), Samsung Fire & Marine Insurance (21.9664 trillion won), Samsung SDI (16.0978 trillion won), and Samsung Securities (12.9366 trillion won). Notably, the number two in sales within Samsung Group changed in one year. Samsung Display, which was the second-highest in sales among Samsung affiliates two years ago, dropped to third place last year, while Samsung Life Insurance rose from third to second place during the same period.
Among major Samsung affiliates that joined the 1 trillion won sales club last year, seven saw sales increase by more than 10% from 2023 to 2024. Among them, Samsung Heavy Industries' sales rose from 7.9072 trillion won to 9.8674 trillion won, an increase of 24.8%. Consolidated sales also increased from 8.0094 trillion won to 9.9030 trillion won, up 23.6%. Samsung Electronics also showed a sales growth rate in the 20% range, with standalone sales rising 22.7% from 170.374 trillion won to 209.052 trillion won. In particular, Samsung Electronics had the highest increase in standalone sales amount among Samsung affiliates, with an increase of more than 38.6781 trillion won compared to the previous year. The consolidated sales growth rate of Samsung Electronics was about 8.1% (from 258.9354 trillion won to 300.8709 trillion won).
Additionally, Samsung Biologics increased by 19% (from 2.9387 trillion won in 2023 to 3.4971 trillion won in 2024), Hotel Shilla by 18.1% (from 2.1527 trillion won to 2.5428 trillion won), Samsung Welstory by 11.9% (from 2.5936 trillion won to 2.9027 trillion won), Samsung Electro-Mechanics by 11.8% (from 6.7958 trillion won to 7.5985 trillion won), and Cheil Worldwide by 11.6% (from 1.244 trillion won to 1.3879 trillion won). Most affiliates saw sales increase by more than 10% in one year. Samsung Fire & Marine Insurance (8.1%), Samsung E&A (7.7%), S-1 Corporation (7.5%), Samsung Life Insurance (6.7%), Samsung SDS (5.4%), and Samsung Electronics Sales (5.1%) also saw sales rise by more than 5% in the past year.
On the other hand, Samsung SDI's standalone sales, which were 19.1063 trillion won two years ago, decreased by 15.7% to 16.0978 trillion won last year. Its consolidated sales dropped 22.6% from 21.4367 trillion won in 2023 to 16.5922 trillion won in 2024. Companies with sales declines of more than 5% in the past year included Samsung C&T Corporation, down 6.4% (from 24.4736 trillion won in 2023 to 22.9132 trillion won in 2024), and Samsung Display, down 6.2% (from 27.0833 trillion won to 25.4014 trillion won).
Samsung Electronics' operating profit/loss over the past year turned from a loss exceeding 11 trillion won to a profit exceeding 12.361 trillion won last year. While the turnaround to profit is welcome, it was confirmed that the operating profit margin last year was the lowest recorded since the -6.8% operating margin recorded between 2015 and 2024. The operating profit margin, which represents the ratio of operating profit to sales based on standalone financial statements of Samsung Electronics, was about 5.9% last year.
This survey was conducted to mark the 87th anniversary of Samsung Group's founding. The anniversary is on the 22nd. Samsung Group considers March 22, 1987, when the late Chairman Lee Kun-hee took office as the head and declared the 'second founding' based on Samsung Sanghoe (now Samsung C&T Corporation), as the founding anniversary to honor that meaning. The companies surveyed were 21 out of more than 60 Samsung affiliates reported to the Fair Trade Commission as of last May, whose sales could be confirmed through audit reports and business reports as of the 19th. The 21 companies surveyed this time accounted for more than 95% of the total sales of Samsung Group, including many core companies. Sales are based on standalone (individual) financial statements.
Oh Il-seon, head of Korea CXO Institute, said, "To open the era of 500 trillion won in sales for Samsung's domestic affiliates in the future, it is difficult to achieve this within the next five years with the current business structure, so fostering remarkable new businesses beyond existing ones is urgently needed." He added, "For Samsung, alongside sales growth, strengthening the operational soundness with high added value remains an important task for the CEOs of each affiliate."
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