Samsung sees 20% annual net profit increase in Q2 2021 with total revenue of KRW 63.67 trillion

Recently, Samsung Electronics announced the financial results for the second quarter ending June 30, 2021. The total aggregate revenue was KRW 63.67 trillion, a 20% increase from the previous year and a record for the second quarter.

According to the report, in the second quarter, while reducing smartphone sales due to low season and inadequate supply of components, the company actively responded to server-based memory demand and recorded the highest second-quarter sales as sales of premium household items were also large.

Operating gains recorded 12.57 trillion won as the memory market improved and the Austin base was normal, while display performance improved due to rising sales prices and a single profit.

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The established business also retains strong profits through the effective use of SCM (supply chain management) capabilities, or under difficult circumstances such as stock shortages. The effective profit margin was 19.7%, which improved significantly from the previous quarter and the same period last year.

The company’s capital expenditure in the second quarter reached KRW 13.6 trillion, including KRW 12.5 trillion spent on semiconductors and KRW 0.6 trillion on demonstration. The total amount spent in the first half was KRW 23.3 trillion, including KRW 20.9 trillion semiconductors and KRW 1.4 trillion for display.

Samsung Q2 2021 Business Results

Samsung Mobile Profitability Remains Solid in Q2

The IT & Mobile Communications Division contributed KRW 22.67 trillion in aggregate revenue and KRW 3.24 trillion operating revenue in the second quarter.

With the successful launch of new folding smartphones with a more advanced user experience, the company will strengthen its leadership in the premium category by introducing a foldable model while continuing the momentum of the Galaxy S series sales throughout the year.

Samsung Semiconductor Earnings Rise 

The semiconductor business invested KRW 22.74 trillion in aggregate revenue and KRW 6.93 trillion operating revenue in the second quarter.

The Memory Business reported a significant increase in revenue from the previous quarter, led by strong demand for server and PC memory, as well as a stronger than expected increase in average retail prices for both DRAM and NAND chips.

Samsung Display Earnings 

The Display Panel Business sent KRW 6.87 trillion in total revenue and KRW 1.28 trillion operating revenue in the second quarter. Its acquisition has improved since the last quarter although the season is weak for portable products, mainly due to the one-time profit and the increase in the overall ASP.

Samsung Strong Earnings For Both TV and Equipment

The Consumer Electronics Division, which owns Visual Display and Digital Appliances, recorded KRW 13.4 trillion in total revenue and KRW 1.06 trillion operating revenue in the second quarter.

The company will carefully monitor the rapidly changing market conditions and respond promptly to the changes required by its high-power SCM. Expanded sales of premium products with regional seasonal promotions, improved online and offline purchases, and improved performance is part of the profit system.