Samsung profit soars 85%

Sales jump 18%.

Samsung has recorded net profit of 42.19 KRW trillion ($49 billion) for FY17 – a whopping 85.61% increase from 22.73 KRW trillion ($26.3 billion) in FY16, driven by demand for its premium products in mobile, televisions and home appliances. FY17 sales increased almost 19% to reach 239.58 KRW trillion ($278 billion).

Sales in the display panel segment grew 51% year-on-year to reach 11.18 KRW trillion, attributed to an increased supply of OLED panels to premium smartphones. However, earnings decreased for LCDs due to a decline in average selling prices and shipment under weak seasonality.

“With the smartphone market entering a period of weak seasonality, intensified competition with LTPS LCD and slow demand for OLED may cause a decline in profitability,” the company said.

Sales in the IT and mobile communications segment increased by 8% year-on-year to 25.47 KRW trillion thanks to an improved product mix due to an increase in flagship sales. Smartphone sales decreased from low-end models and earnings decreased due to an increase in marketing cost amid strong seasonality.

Samsung Family Hub refrigerator 

“We expect earnings to improve driven by sales expansion of flagship products such as the S9 release with enhanced key features such as camera and services such as Bixby,” the company said.

Sales in the consumer electronics segment suffered a 4% decline year-on-year (YoY), although improved by 14% quarter-on-quarter (QoQ) to reach 65.98 KRW trillion. An improvement in earnings QoQ was led by an increase in sales of premium ultra large-size QLED TVs under strong seasonality. Earnings slightly decreased YoY due to the reshaping of product line-ups with reduced mid to low-end products.

“Under weak seasonality for TVs, our focus will be on securing profitability by expanding premium products sales and an early release of new models. We will also increase premium line-ups for 75 inch and above and ultra large-size QLED/8K TVs,” the company said.

In the domestic appliance segment, revenue increased YoY driven by strong sales of premium products such as Flex Wash/Dual Door oven, amid demand growth from markets including North America and Europe.

“We aim to increase sales of premium products such as Family Hub refrigerators and QuickDrive washing machines in Q1 2018. We want to enhance our premium product marketing and improve earnings by expanding our B2B business and increasing online sales,” the company said.

 

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