Samsung has a battery manufacturing division called Samsung SDI, which makes batteries for products ranging from smartphones to EVs. Earlier today, Samsung SDI announced its financial results for Q1 2024. The company's sales have fallen despite higher EV business, but the company vows to become a “global top-tier company by 2030.”
Samsung SDI profits fall 38% in Q1 2024 due to higher competition
Samsung SDI announced its revenue was KRW 5.13 trillion ($3.7 billion) in Q1 2024. That's a 4% drop compared to Q1 2023. More importantly, its net profit fell KRW 267.4 billion ($193 million), a 29% decrease compared to the previous year. Compared to the previous quarter (Q4 2023), its revenue and operating profit fell 8% and 14%, respectively.
The company's small battery business, which includes smartphone batteries, saw a drop in sales, but its profitability increased due to its pivot to pouch batteries. The sales of pouch batteries increased due to higher sales of flagship smartphones from an unnamed customer. The sales of cylindrical batteries dropped due to inventory correction of major customers in the micro-mobility segment (e-bikes and e-scooters). The company plans to enter electric two-wheeler battery markets in India and other Southeast Asian countries.
Sales and profit of its Energy Storage Solutions (ESS) decreased due to seasonality. The company expects sales to improve in the coming quarters, as it plans to expand the sales of Samsung Battery Box and batteries for Uninterrupted Power Supply (UPS) systems.
The sales of automotive batteries increased, resulting in higher profit in the EV battery segment. This is due to steady sales of P5 batteries for premium EVs and the launch of P6 batteries for the North American market. Automotive battery sales are estimated to remain solid with the expansion of P6 battery sales.
Samsung SDI CEO Yoon-ho Choi said, “By making hard 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.”
