▲ Samsung SDI Q2 2022 Operating Results (Source: Samsung SDI)

Q2 2022 Revenue 4.7408 trillion won · Operating profit 429 billion won
Growth expected in the second half of the year centered on medium-to-large batteries and high value-added products

Following the achievement of its highest-ever quarterly operating performance, forecasts have emerged that Samsung SDI will continue its growth momentum in the second half of the year.

Samsung SDI announced its business results for the second quarter of 2022 on the 29th, stating that it recorded sales of 4.7408 trillion won, an operating profit of 429 billion won, and a net profit of 409.2 billion won in the second quarter.

Sales increased by 17.1% and operating profit increased by 33.1% compared to the previous quarter, marking all-time highs for both sales and operating profit, and it is the first time that operating profit has exceeded 400 billion won.

Looking at the business divisions, sales in the energy sector increased by 22.7% and operating profit by 48.4% compared to the previous quarter.

Compared to the previous quarter, sales of medium and large batteries increased, and profitability also improved.

Sales of high-value products such as Gen.5 for automotive batteries expanded amidst robust demand growth, and for ESS batteries, revenue increased due to expanded sales for power use, and profitability also improved by reflecting the increase in raw material costs in the selling price.

In the case of small batteries, sales increased and profitability improved, centered on cylindrical batteries. Sales of cylindrical batteries grew, driven by demand for electric vehicles and high-output power tools, while sales of pouch-type batteries declined due to slowing demand for IT products and pent-up demand for new products in the second half of the year.

Sales in the electronic materials division amounted to 669.2 billion won, up 7.5% from the same period last year but down 8.4% from the previous quarter. Operating profit was 184.1 billion won, up 45.5% from the same period last year and 17.0% from the previous quarter.

The electronic materials division enhanced profitability compared to the previous quarter through the expansion of high-value-added products. Sales of OLED materials increased as supply to new platforms commenced, while sales of semiconductor materials remained at the same level as the previous quarter. The polarizing film division maintained profitability by expanding sales centered on products differentiated from competitors.

Sales of medium and large batteries are expected to continue in the second half of this year, driven by high value-added products.

With the operation of the second factory in Hungary, sales of Gen.5 batteries for automotive batteries are set to begin in earnest, and plans are underway to continue securing orders for next-generation platforms. Sales of ESS batteries are expected to expand due to the increased demand for renewable energy driven by high oil prices and expanded eco-friendly policies, as well as the launch of new power ESS products.

Sales growth for small batteries is projected to be driven by the mobility sector. Sales of cylindrical batteries for mobility applications, such as electric vehicles and electric bicycles, are expected to expand. A 46-pi (Φ, diameter 46mm) line is also being built to support new electric vehicle projects.

In the second half of the year, the electronic materials sector expects to expand sales, centered on OLED and semiconductor materials.

Samsung SDI explained, “We are expanding sales of OLED materials to major customers and pursuing entry into next-generation platforms. For semiconductor materials, we plan to expand sales through the timely launch of new products, and for polarizing films, we intend to respond to the decrease in downstream demand by diversifying our customer base.”