Q3 2024 Samsung Electronics Co Ltd Earnings Call Transcript
Key Points
- Samsung Electronics Co Ltd (XBUL:SSUN) reported a 7% sequential increase in company-wide revenue, reaching KRW79.1 trillion, driven by strong performance in the MX business and new smartphone launches.
- The company achieved significant sales growth in high-value memory products, with HBM sales increasing by over 70% and server SSD sales by mid-30s, indicating strong demand in the AI and server markets.
- Samsung Electronics Co Ltd (XBUL:SSUN) maintained its position as the highest-ranked non-US company in Interbrand's top 100 Best Global Brands, with a brand value increase of 10% to $100.8 billion.
- The company is focusing on expanding its AI strategy across its product lines, enhancing connectivity and user experience, and driving growth in premium segments.
- Samsung Electronics Co Ltd (XBUL:SSUN) plans to leverage its advanced technologies, such as the 2 nanometer GAA process, to increase competitiveness and secure major customer demand in the foundry market.
- Operating profit declined by KRW1.3 trillion quarter on quarter to KRW9.2 trillion, impacted by one-off costs and currency effects, with operating margin decreasing to 11.6%.
- Gross margin fell by 2 percentage points sequentially to 37.9%, due to inventory valuation reversals and aging inventory depletion.
- The Korean won's strength against the US dollar negatively impacted operating profit by approximately KRW0.5 trillion, affecting component businesses.
- SG&A expenses increased by KRW1.5 trillion to KRW20.8 trillion, with R&D expenses reaching a new high, impacting overall profitability.
- The company faces rising competition in the display market, leading to a conservative outlook for performance improvements despite demand growth in IT and automotive sectors.
Hello, everyone, and welcome to Samsung Electronics 2024 third-quarter financial results conference call. I will be your coordinator. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to turn the conference over to the Investor Relations team. Please go ahead.
Good morning to those here in Korea -- in Asia and good evening to those in the Americas and Europe. I am Daniel Oh, Head of Investor Relations. Welcome to Samsung Electronics earnings call for the third quarter of 2024.
Before getting into details of our performance, I want to inform you that presentation deck and other supplementary information can be found on Samsung Electronics Investor relations website at www.samsung.com\global\ir, and a webcast of today's call will also be available on the website.
Today's discussion will include forward-looking statements based on the current environment. These statements are subject to certain risks and uncertainties
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