Quarterly revenue of KRW 70.46 trillion, operating profit at KRW 4.31 trillion
Macroeconomic uncertainties expected to persist; anticipates demand to begin recovering in 2H
Samsung Electronics recently reported financial results for the fourth quarter and the fiscal year 2022.
The Company posted KRW 70.46 trillion in consolidated revenue and KRW 4.31 trillion in operating profit in the quarter ended December 31, 2022. For the full year, it reported 302.23 trillion in annual revenue, a record high, and KRW 43.38 trillion in operating profit.
The business environment deteriorated significantly in the fourth quarter due to weak demand amid a global economic slowdown. Earnings at the Memory Business decreased sharply as prices fell and customers continued to adjust inventory. The System LSI Business also saw a decline in earnings as sales of key products were weighed down by inventory adjustments in the industry. The Foundry Business posted a new record for quarterly revenue, while profit increased year-on-year on the back of advanced node capacity expansion as well as customer base and application area diversification.
Samsung Display Corporation (SDC) saw earnings in the mobile panel business decline as smartphone demand fell, while the large panel business narrowed its losses as sales of QD-OLED for TVs increased and as the businessās LCD inventory was fully depleted.
Revenue and profit at the Mobile eXperience (MX) Business declined amid weak demand in the mid- to low-end segments, while the Networks Business posted an increase in revenue led by domestic demand for 5G installations and expansion in overseas businesses.
The Visual Display Business posted higher revenue and operating profit as sales of premium products, including Neo QLED and Super Big TVs, increased, while the Digital Appliances Business saw a profit decline because of cost increase due to deteriorated market conditions and as competition intensified.
The strength in the US dollar against the Korean won resulted in a positive impact of approximately KRW 0.5 trillion company-wide on operating profit compared to the previous quarter.
The recent change in Korean tax law which revised taxation on dividends received from subsidiaries led to a decline in the Company’s corporate tax in the fourth quarter.
The one-time item due to the change in tax law was reflected in the quarter’s financial statements and does not mean the Company received a corporate tax refund, nor is it related to the Company’s actual tax payment.
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