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; full-year revenue reached KRW 300.9 trillion, up 16.2% from 2023, the second highest ever.

• Q4 operating profit was KRW 6.5 trillion, up from KRW 2.8 trillion in Q4 2023 but down KRW 2.7 trillion quarter-on-quarter; full-year operating profit rose to KRW 32.7 trillion, a 398% increase from 2023.

• Net profit for Q4 2024 was KRW 7.8 trillion, with full-year net profit at KRW 34.5 trillion, up 122.5% year-over-year; EPS for the year was KRW 4,950.

• Management remains focused on technology leadership, portfolio diversity, and overcoming macroeconomic and geopolitical challenges.

• Brand value surpassed USD 100 billion, ranking 5th globally for the fifth consecutive year.

Financial highlights

• Gross margin for Q4 2024 was 37.6%, up from 32% in Q4 2023; EBITDA margin improved to 23%.

• SG&A expenses rose to KRW 22 trillion, representing 29.1% of sales; free cash flow for 2024 was KRW 19.9 trillion.

• Net cash at year-end was KRW 86.84 trillion; cash and equivalents at KRW 112.65 trillion.

• Current assets increased 15.9% to KRW 227.1 trillion; non-current assets up 10.6% to KRW 287.5 trillion.

• Dividend payout ratio at 29.2%; annual regular dividend of KRW 9.8 trillion maintained.

Outlook and guidance

• Ongoing weakness in the semiconductor business expected in H1 2025, but growth targeted via premium AI-enhanced products, advanced node migration, and smartphone sales.

• Memory market conditions to remain soft in H1 2025, with recovery expected from Q2 as inventory adjustments subside.

• Foundry and S.LSI expect weak earnings in H1 2025 but aim for year-over-year growth via advanced technology and AI/HPC sales.

• Display outlook remains conservative due to soft smartphone demand, but OLED adoption and IT/auto segment growth expected.

• MX division targets double-digit flagship revenue growth in 2025, focusing on AI and premium products.