Samsung Electronics (005930) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated sales reached KRW 74.1 trillion, up 3% sequentially and 23% year-over-year, driven by memory and display growth.

• Operating profit surged to KRW 10.44 trillion, with margin expanding to 14.1%, supported by strong memory and OLED demand.

• Net profit rose to KRW 9.84 trillion, a significant increase from KRW 1.72 trillion in 2Q23.

• Gross profit margin rose to 40.2%, aided by high-value memory products and efficient SG&A management.

• Foreign exchange gains contributed KRW 0.8 trillion to operating profit.

Financial highlights

• DS division revenue grew 23% sequentially and 94% YoY; display up 42% sequentially; MX division revenue fell 19% sequentially.

• Gross profit increased by KRW 3.7 trillion to KRW 29.8 trillion; SG&A expenses at KRW 19.3 trillion.

• CapEx rose to KRW 12.1 trillion, with KRW 9.9 trillion in DS and KRW 1.8 trillion in display.

• Quarterly dividend of KRW 361 per share, totaling KRW 2.45 trillion for the quarter; total dividend payments in 2Q24 reached KRW 4.96 trillion.

• EBITDA margin rose to 27% from 16% in 2Q23.

Outlook and guidance

• Memory expects continued strong AI server demand, with HBM and DDR5 leading growth; some constraints in PC/mobile supply.

• Foundry projects growth outpacing the market, driven by advanced node expansion, 3nm GAA mass production, and AI HPC demand.

• Display anticipates improved H2 sales from new smartphone launches and AI adoption, but faces intensified competition.

• MX expects increased premium smartphone demand and ecosystem product growth, with focus on flagship and foldable devices.

• Visual Display forecasts TV demand recovery in H2, focusing on premium and large TVs and AI-driven home appliances.