Samsung’s financial report from the third quarter of 2021 – the highest quarterly profit in the last three years

Samsung’s financial report from the third quarter of 2021 – the highest quarterly profit in the last three years

Samsung’s financial report from the third quarter of 2021 – the highest quarterly profit in the last three years

News unit : Company Samsung on Thursday, October 28, 2021 (Aban 6, 1400) released its financial report for the third quarter of this year (ended on September 30) Published. According to this report, Samsung’s revenue in the last quarter, with an annual growth of 10%, amounted to an unprecedented figure of 73.98 trillion Korean won, which is approximately equal to 63 billion dollars at the current exchange rate. Samsung’s operating profit was also announced at 15.82 trillion won ($13 billion), which has increased by 26% compared to the same period last year. It should be noted that Samsung has spent one of its brightest seasons, because the operating profit of the last quarter is the highest quarterly profit in the last three years and the second in the history of Samsung.

According to Samsung’s continued favorable conditions in the memory market have played an important role in its recent financial success. Of course, the semiconductor products and display panel businesses also achieved decent sales. Apparently, the consumer goods market has also been according to Samsung’s wishes in the recent season. In the following, we will review more details of the performance of each division of this Korean company in the third quarter of 2021.

Company information and communication technology

Due to the reduction of the restrictions caused by Corona, the overall demand in the market during the last quarter increased compared to the second quarter. Therefore, despite the global shortage of components, the revenue of the mobile sector in the third quarter was accompanied by an increase compared to the previous quarter. According to a recent report, Samsung has achieved an income of 28.42 trillion won in this sector and an operating profit of 3.36 trillion won. According to Samsung, the company’s smartphone sales were boosted by strong sales of flagship models – including the Galaxy Z Fold3 and Galaxy Z Flip3 – as well as phones aimed at the mass market, have seen an increase compared to the second quarter of this year. The income and operating profit of Samsung’s mobile information and communication technology department has, of course, decreased compared to last year on this day. The amount of this decrease for income was 6.7% and for operating profit was nearly 24.5%.

Samsung Galaxy Z Flip3 Bespoke Edition
The device ecosystem — including wearables, PCs, and tablets — also continued to grow, he notes. It should be noted that the expenses that Samsung spent on the promotion and marketing of its foldable devices affected the profitability of this segment to some extent, but in the end, Samsung managed to finish the third quarter with a double-digit profit margin. Needless to say, the network business (one of the subcategories of the mobile sector) also expanded its business outside of Korea (including North America and Japan) in the recent season, and was able to help expand the 5G network in South Korea.

Samsung hopes that in the last quarter of this year, with the expansion Most of its high-end smartphones – such as the Galaxy Z Flip3 Bespoke Edition – as well as the continued sales momentum of the Galaxy S series could maintain double-digit profit margins for the segment. In addition, due to the demand to replace older phones with new phones, Samsung is proactively targeting this segment of the market with fifth generation devices (at a competitive price) and plans to sell other products such as wearables, PCs and tablets. also increase

Semiconductor Products Business

As expected, most of Samsung’s profit in the third quarter of 2021 came from this segment. By selling the products of this segment, Samsung managed to achieve an income equal to 26.41 trillion won, of which 10.6 trillion was operating profit.

Due to the trend towards CPUs with higher cores (high-core) in the first half of the year , the demand for DRAM memory continued to grow. The changes in the work environment and the move towards the hybrid work environment (combination of face-to-face and remote work) also caused a high demand for purchasing personal computers from end users. As a result of these things, the revenue earned in the DRAM segment in the most recent quarter ranks second in the history of this segment.

In the NAND memory sector, we saw an improvement in the demand for purchasing server-specific SSD drives. Also, the major customers of the server sector increased their investment volume and the demand from data centers for high capacity products also continued strongly.

In the business called System LSI, the incomes have also improved during the last quarter. Samsung attributes this to the increased demand for purchasing chipsets and display driver ICs, which is also a result of the production of new smartphones. It should be noted that, in the third quarter of 2021, Samsung managed to produce the first 200-megapixel image sensor for smartphones, as well as the smallest image sensor with dual pixels in the industry.

Display Panel Business

Samsung’s display panel business achieved revenue of 8.86 trillion won and operating profit of 1.49 trillion won in the third quarter of 2021. According to Samsung, the earnings of this segment improved in the last quarter compared to the second quarter, the most important reason of which should be attributed to the strong sales of OLED panels in small to medium sizes. Meanwhile, according to Samsung, the business of display panels in the field of large screens showed a weak performance.

The positive impact of seasonal fluctuations boosted the revenue from sales of mobile displays in the latest quarter. In the meantime, we should not ignore the effect of the growth of sales of advanced devices (including foldable phones), which ultimately had a significant contribution to the highest quarterly profit of this sector in the third quarter. Needless to say, the big screen business is still losing money due to reasons including the drop in prices of LCD panels.

Consumer Electronics

This business itself consists of two divisions “Video Displays” and “Digital Home Appliances”. The financial report of Samsung shows that, as a result of the sales of products of this segment in the third quarter, the revenue was 14.10 trillion won. of which only 0.76 trillion was operating profit. Despite strong sales of high-end televisions and Bespoke home appliances, consumer electronics segment profits were down both quarter-on-quarter and year-over-year. Samsung attributes this drop to the significant increase in the price of raw materials as well as logistics costs (such as storage costs, transportation, packaging, shipping, etc.).

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