Samsung SDI (006400) Q4 2024 earnings summary

Executive summary

• FY24 revenue declined 23% year-over-year to KRW 16.6 trillion, with operating profit dropping 77% to KRW 363 billion and net income falling 72% to KRW 576 billion, driven by weak demand and customer destocking.

• Q4 2024 revenue was KRW 3.8 trillion, down 5% sequentially and 29% year-over-year, with an operating loss of KRW 257 billion due to weak market demand and one-off costs.

• Battery segment saw record ESS revenue but overall performance weakened due to sluggish EV and powertool demand.

• Discontinued operations (polarizer film) are now reported separately.

• Major business highlights include early operation of the Stellantis JV, a new JV with GM, and advancements in solid-state battery development.

Financial highlights

• Including discontinued operations, Q4 revenue was KRW 4.5 trillion and operating loss was KRW 243 billion.

• Pre-tax loss in Q4 was KRW 347 billion, including equity method results and asset impairments.

• Annual revenue including discontinued operations was KRW 17.9 trillion, with operating profit at KRW 446 billion.

• Total assets increased to KRW 40.6 trillion, with liabilities at KRW 19.2 trillion and total debt at KRW 11.6 trillion, mainly due to CAPEX and EV battery investments.

• R&D spending rose to KRW 1.3 trillion, and CAPEX reached KRW 6.6 trillion in 2024.

Segment performance

• Battery business Q4 revenue was KRW 3.6 trillion, down 3% sequentially and 29% YOY; operating loss was KRW 268 billion due to lower utilization and one-off costs.

• ESS battery revenue hit a record high, driven by U.S. data center demand.

• Electronic materials Q4 revenue was KRW 190 billion, down 28% QOQ and 31% YOY; operating profit was KRW 11.6 billion, down 82% QOQ.

• Annual battery revenue was KRW 15.7 trillion with operating profit at KRW 218 billion; electronic materials annual revenue was KRW 901 billion with operating profit at KRW 145 billion.

• Electronic materials segment saw stable semiconductor demand but lower display materials sales due to seasonality.