Samsung SDI (006400) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was KRW 4.5 trillion (₩4,450.1bn), down 13% quarter-over-quarter and 24% year-over-year, mainly due to slowed EV market demand and falling metal prices.

• Operating profit rose 5% sequentially to KRW 280 billion (₩280.2bn) but fell 38% year-over-year; net profit was KRW 301 billion (₩301.2bn).

• Battery business revenue dropped 15% QOQ and 27% YoY; electronic materials revenue increased 5% QOQ and 1% YoY, with improved profitability.

• Company maintained focus on profitability, R&D, and investment in next-generation battery technologies.

• H1 2024 revenue was KRW 9,581 billion, down 14.4% YoY; operating profit was KRW 548 billion, down 33.7% YoY.

Financial highlights

• Q2 operating profit for battery business declined 3% QOQ and 46% YoY to KRW 208 billion.

• Electronic materials operating profit rose 36% QOQ and 16% YoY to KRW 72 billion.

• Gross margin improved to 22.2% in Q2 2024 from 17.3% in Q1 2024.

• Total assets at quarter-end were KRW 37.8 trillion, up 7% sequentially and 15% YoY; liabilities rose to KRW 16.6 trillion.

• Net income attributable to controlling interests was KRW 596 billion for H1 2024.

Outlook and guidance

• Second half expected to mirror first half with continued weak demand, especially in EV batteries; gradual recovery anticipated later than previously forecast.

• Focus on maximizing revenue, expanding US supply, and accelerating new project launches; ESS battery demand and sales expected to maintain upward trend.

• Electronic materials segment expects better performance in semiconductor and OLED materials in H2, with polarizer film demand rebounding in Q4.

• Continued investment in battery capacity and R&D, with stable AA credit rating and robust capital structure.