Samsung Electronics Releases 2022Q4 and Annual Financial Report

by ·

Samsung Electronics released its financial report for the fourth quarter of 2022 and the full year of 2022 today. In the fourth quarter of 2022, Samsung Electronics’ revenue was 70.46 trillion won (approximately $57.2 billion), a year-on-year decrease of 8%. Operating profit was 4.3 trillion won (about $3.5 billion), down 69% year-on-year. Samsung Electronics’ annual revenue was 302.23 trillion won (about $245.3 billion), a record high, and its annual operating profit was 43.38 trillion won (about $35.2 billion), a year-on-year decrease of 16%.

Divided by business group, DS (Device Solutions) business group is mainly responsible for the semiconductor and chip foundry business, revenue in the fourth quarter of 2022 was 2.007 billion won (approximately $16.3 billion), a year-on-year decrease of 24% and a quarter-on-quarter decrease of 13%; the full-year revenue in 2022 was 9.846 billion won (about $79.9 billion), an increase of 3% compared to 2021.
In the financial report, Samsung stated that the revenue decline of this business group was mainly due to the client’s digestion of inventory and the decline in the price of flash memory chips, and plans to expand capacity reserves to meet the demand for DDR5 memory for servers and PCs, and actively respond to the demand for products such as mobile terminal LPDDR5X.

The DX (Device eXperience) business group consists of VD (Visual Display), DA (Digital Appliances), MX (Mobile eXperience), Networks, and other departments. Revenues from home appliances and other products are included in this business group. The revenue of the DX business group in the fourth quarter of 2022 was 4.271 billion won (approximately $34.7 billion), a year-on-year decrease of 4% and a quarter-on-quarter decrease of 10%; the full-year revenue in 2022 will be 18.249 billion won (approximately $148.1 billion), an increase of 10% compared to 2021.

Samsung said that the launch of the Galaxy S23 mobile phone, will improve its competitiveness in the mobile phone market, and at the same time develop high-end tablets and wearable devices to ensure profitability.

The revenue of the SDC (Samsung Display) business group in the fourth quarter of 2022 was 9.31 trillion won (approximately $7.6 billion), a year-on-year decrease of 3% and a quarter-on-quarter decrease of 1%; the full-year revenue in 2022 will be 3.438 billion won (about $27.9 billion), an increase of 8% compared to 2021. Samsung said that OLED panels for high-end mobile phones have not been greatly affected, and revenue remains stable. In the first quarter of 2023, it will launch ultra-large-sized TVs and displays using QD-OLED panels.

Samsung Electronics acquired Harman, an American auto parts manufacturer, in 2017, and then established an independent business group. The business group’s revenue in the fourth quarter of 2022 will be 394 million won (about $3.2 billion), a year-on-year increase of 38% and a quarter-on-quarter increase of 9%; the full-year revenue in 2022 will be 1.321 billion won (about $10.7 billion), an increase of 32% compared to 2021.

Tags: