Samsung SDI defies market downturn with $194 million Q1 profit

Samsung SDI's electric truck situated at the InterBattery 2024 hosted in Coex, southern Seoul on March 6. [NEWS1]

Samsung SDI reported a consensus-beating 267.5 billion won ($194 million) in operating profit for the first quarter of 2024, owing to steady sales of premium EV batteries despite sluggish market conditions.

The figure fell 29 percent compared to the previous year but exceeded the market consensus of 228.1 billion won.

Quarterly revenue slumped 4 percent to 5.13 trillion won, in line with analysts’ expectations.

Battery sales dropped 5 percent to 4.58 trillion won, while the sector’s operating profit plummeted 32 percent to 214.5 billion won.

Sales for battery materials decreased by 1 percent to 549.1 billion won, while operating profit fell 10 percent to 52.9 billion won.

The Korean battery maker forecasts improved performance in the automotive and energy storage systems (ESS) battery sectors from the next quarter, driven by the expansion of sales of its new P6 battery and battery packs, such as the Samsung Battery Box.

For the small battery business, the company aims to enter new overseas markets, including the outdoor power equipment market in the United States and the electric two-wheeler markets in India and Southeast Asia.

Profitability in cylindrical cells will be enhanced through long-term supply agreements, the battery maker said.

“Samsung SDI is progressing substantially in its journey for ‘super gap’ technological competitiveness and profitable qualitative growth despite high uncertainties in the current business environment,” said Samsung SDI’s president and CEO Choi Yoon-ho in a statement. “By making great efforts for a new level of change and innovation, the company will bring forward realizing its goal of being a global top-tier company by 2030.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]