Samsung Electronics (005930) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was KRW 75.8 trillion, up 12% year-over-year but down 4% quarter-on-quarter; operating profit reached KRW 6.5 trillion, a significant increase from KRW 2.8 trillion in Q4 2023, with an operating margin of 8.6%.

• Full-year 2024 revenue totaled KRW 300.9 trillion, the second highest ever, up 16% from 2023; operating profit rose to KRW 32.7 trillion from KRW 6.6 trillion.

• Net profit for Q4 2024 was KRW 7.8 trillion, with EPS at KRW 1,116; full-year net profit was KRW 34.5 trillion, EPS KRW 4,950.

• DS division saw a 3% revenue increase, led by high-value Memory products, while DX division revenue fell 10% due to competition and fading new smartphone launch effects.

• Management remains committed to overcoming challenges and driving growth through technology leadership and portfolio diversity.

Financial highlights

• SG&A expenses rose to KRW 22 trillion, up KRW 1.2 trillion quarter-on-quarter, representing 29.1% of sales.

• Gross margin for Q4 2024 was 37.6%, up from 32% in Q4 2023; EBITDA margin improved to 23%.

• Free cash flow for 2024 was KRW 19.9 trillion; net cash at year-end was KRW 86.84 trillion, with cash and equivalents at KRW 112.65 trillion.

• ROE for 2024 increased to 9% from 4% in 2023; asset turnover stable at 0.6; leverage ratio at 1.3.

• Currency effects had a slightly positive impact of KRW 0.7 trillion.

Outlook and guidance

• Ongoing weakness in the semiconductor business expected to limit near-term performance, but growth targeted via premium AI-enhanced products and smartphone sales.

• Memory: Focus on advanced node migration and high-value products; reduce legacy DRAM/NAND in 2025; market conditions to remain soft in H1 2025, with recovery expected from Q2.

• Foundry expects weak earnings in H1 2025 but aims for year-over-year revenue growth by increasing advanced technology sales.

• Display outlook remains conservative due to soft smartphone demand, but OLED adoption and IT/auto segment growth expected; large display segment to launch new high-performance TVs/monitors.

• MX division targets double-digit flagship revenue growth in 2025, focusing on AI and premium products.