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; annual revenue reached KRW 300.9 trillion, the second highest ever.

• Operating profit for Q4 2024 was KRW 6.5 trillion, a significant increase from KRW 2.8 trillion in Q4 2023, but down sequentially; annual operating profit rose to KRW 32.7 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 QoQ and 46% YoY, driven by high-value Memory products for servers.

• Management remains confident in leveraging business diversity and tech leadership for gradual recovery and future growth.

Financial highlights

• SG&A expenses rose to KRW 22 trillion, up KRW 1.2 trillion quarter-on-quarter, mainly due to increased R&D.

• 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 remained stable at 0.6; leverage ratio held at 1.3.

Outlook and guidance

• 2025 performance improvements are expected to be limited by ongoing semiconductor weakness, but growth will be pursued via premium AI-enhanced products and smartphone sales.

• Memory: Focus on advanced node migration and high-value products; reduce legacy DRAM/NAND in 2025.

• Foundry expects double-digit growth in advanced technology below 5nm, with a slower recovery for major customers in H1 2025.

• Smartphone market projected to grow slightly year-on-year, led by AI product adoption and premium segment expansion.

• Large display segment to launch new high-performance TVs/monitors.