SAMSUNG SDI reports KRW 16.59 trillion ($11.55 billion) in annual revenue and KRW 363.3 billion in annual operating profit amid market slowdown
In Q4, the quarterly revenue stood at KRW 3.75 trillion, posting a record high revenue in the ESS battery business
Key milestones achieved in 2024 include establishing a strong foothold in the U.S. market, expanding partnerships, securing new contracts, and enhancing technology and product competitiveness
Core business strategy for 2025 will focus on strengthening technological competitiveness and improving the business structure, laying a foundation for sustainable growth.
SEOUL, Korea – January 24, 2025 – SAMSUNG SDI today announced its final quarter and annual financial results for 2024.
In 2024, SAMSUNG SDI achieved annual revenue of KRW 16.59 trillion, with an operating profit of KRW 363.3 billion. Including the polarizer films business, which is stated separately as part of discontinued operations, the total revenue reached KRW 17.88 trillion with an operating profit of KRW 446.4 billion.
In the fourth quarter, the revenue totaled KRW 3.75 trillion, while the company recorded an operating loss of KRW 256.7 billion.
Fourth Quarter Earnings Results by Business
The battery business posted KRW 3.56 trillion in revenue, reflecting a 28.7 percent decrease year-on-year and a 2.9 percent decrease quarter-on-quarter. The operating loss was KRW 268.3 billion.
Batteries for energy storage systems (ESS) generated a record high revenue in the fourth quarter, driven by increased sales of batteries to be used for ESS for power and uninterruptible power supplies (UPS), backed by growing power demand for data centers amid strong AI adoption in North America.
Revenue from electric vehicle batteries and power tool batteries declined due to inventory adjustments by major customers as a result of slower demand growth.
Electronic materials revenue reached KRW 190 billion, down 31 percent year-on-year, and down 27.9 percent quarter-on-quarter. Operating profit also fell to KRW 11.6 billion.
Demand for semiconductor manufacturing materials grew slightly due to increased input of memory semiconductor wafers. But, sales of display manufacturing materials declined in response to seasonal factors.
2024 Business Highlights
SAMSUNG SDI successfully initiated early operations of its joint venture with Stellantis, StarPlus Energy, in the U.S. and quickly secured high yields. The company also signed the final agreement with General Motors for another joint venture in the U.S., further expanding its electric vehicle battery business in the region.
The company has also secured EV projects from major OEMs in Europe and Asia based on competitiveness of its premium prismatic batteries, and is in talks with multiple customers to provide next-generation 46-phi cylindrical batteries. Some cylindrical projects are soon to be finalized. In addition, SAMSUNG SDI has expanded partnerships with the top three independent power producers (IPP) in the U.S.
Alongside mass production of the premium prismatic battery P6, which boasts the highest energy density in the industry, SAMSUNG SDI began supplying the SAMSUNG Battery Box (SBB) 1.5, featuring enhanced energy density and safety. The company also established a pilot line for the development of LFP large cells.
In addition, the company expanded the supply of all-solid state battery samples to five customers and continued its R&D efforts including internalization of key battery materials.
Market Outlook and Business Strategies for 2025
This year, the global battery market for electric vehicles is expected to grow by about 21 percent compared to 2024, mainly in the U.S. and Europe, despite macroeconomic uncertainties.
The battery market for ESS is expected to grow by about 14 percent, led by North America, as the demand for utility ESS and UPS grows due to the booming AI industry.
The small battery market is forecast to witness a notable growth of the E2Wheeler segment, especially in the Indian market. However, demand recovery on power tool batteries would face delays as customers continue to adjust their inventories.
In the electronic materials market, stable growth in semiconductor materials is expected due to expanding demand for high-value AI products.
Based on this market outlook, SAMSUNG SDI plans to build a foundation for sustainable growth this year through its key business strategies of enhancing technological competitiveness and improving business conditions.
The key is to lay the foundation for recovery in the first half of the year by leveraging differentiated technology and operational efficiency, amid ongoing internal and external uncertainties.
2024 Dividend and 2025-2027 Shareholder Return Policy
SAMSUNG SDI also held its board of directors meeting and decided to pay KRW 1,000 for common dividend per share and KRW 1,050 for preferred dividend per share in 2024.
SAMSUNG SDI plans to suspend cash dividends for three years starting in 2025 and focus its resources on strengthening its growth engines. The company anticipates free cash flow to remain negative due to continued facility investments for mid- to long-term growth.
