Samsung SDI (006400) Q4 2023 earnings summary

Executive summary

• FY23 revenue rose 12.8% YoY to KRW 22,708.3bn, while operating profit fell 9.7% to KRW 1,633.4bn; Q4 revenue and operating profit declined YoY.

• EV battery sales and profitability grew in FY23 despite the global recession; FY24 plans center on technology, cost innovation and customer expansion.

Financial highlights

• Q4 revenue was KRW 5,564.8bn, down 6.4% QoQ and 6.7% YoY; FY23 revenue reached KRW 22,708.3bn, up 12.8% YoY.

• Q4 operating profit was KRW 311.8bn, down 37.1% QoQ and 36.5% YoY; FY23 operating profit was KRW 1,633.4bn, down 9.7% YoY.

• Q4 net profit was KRW 493.3bn, down 21.6% YoY; FY23 net profit was KRW 2,066.0bn, up 1.3% YoY.

• FY23 gross profit was KRW 3,981.9bn, with a 17.5% gross margin versus 21.0% in FY22; Q4 gross margin was 17.6% versus 19.8% in Q4 2022.

Outlook and guidance

• FY24 EV battery market forecast: $185bn, up 18% YoY; muted growth is expected amid high interest rates and recession, with gradual recovery from 2H.

• FY24 ESS market forecast: $26bn, up 18% YoY; small battery market forecast: $44bn, up 3% YoY.

• 1Q24 XEV sales to include P6 mass production for a major customer; ESS sales to expand with Samsung Battery Box. Small battery pouch sales expected to grow, while cylindrical sales face seasonality.

• FY24 priorities include accelerating all-solid-state battery commercialization and mass-production preparation, improving cost competitiveness, and expanding strategic customer partnerships.