Samsung SDI Sales And Profits Up In Q3 202111/08/2021
Samsung SDI reports record revenues and profits in the third quarter of 2021. The company forecasts increased battery sales in the future.
In Q3, the company noted a revenue increase by 11.4% year-over-year, while its operating profits increased by nearly 40% year-over-year. About 80% of the sales comes from “Energy and others” category – mainly batteries.
The South Korean manufacturer, which is also one of the largest lithium-ion EV battery suppliers for brands like BMW, Ford and Rivian, recently announced a memorandum of understanding to form a battery joint venture in the U.S. with Stellantis.
Samsung SDI Q3 2021 results
- Revenue: 3,440 billion KRW, ≈$2.9 billion (up 11.4% year-over-year)
- Revenue (Li-ion Battery – xEV and non-automotive):
2,741 billion KRW, ≈$2.3 billion (up 15.0% year-over-year)
80% of total revenue
- Net Profit: 420 billion KRW, ≈$356 million (up 46.0% year-over-year)
12.2% of net margin
The company managed to improve its results despite the fact that EV battery demand was affected by chip shortage.
“Large-sized battery maintained profitability compared to the last quarter, despite weak demand. EV battery also maintained profitability with sales increase of high value-added products, though there was a decrease in demand caused by chip shortage for cars. ESS revenue went down caused by supply schedules for major projects.
Small-sized battery revenue and profitability also went up. Cylindrical battery revenue increased from mobility such as EV, E-bikes, and pouch battery saw an increase in profitability thanks to sales increase from new smartphones and wearable devices to major customers.”
The market outlook for the fourth quarter of the year remains promising. Samsung SDI expects that all types of batteries – EV prismatic and cylindrical – will sell better.
“The large-sized battery division is expected to see more growth from new and high value-added products. Although we expect the chip shortage issue continues, EV battery will expand sales with the supply expansion of Gen.5, and ESS battery will see improved profitability thanks to sales increase of UPS and residential use ESS.
For small-sized battery, we expect sales increase for cylindrical battery. Cylindrical battery sales will go up for major applications such as EV, power tools, and pouch battery sales will go up for new smartphones to overseas customers.”
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