EXCLUSIVE:Samsung Reports Record Local Profits, Revenues Up $417M
The Australian operation of Samsung Electronics is faring better than their parent Company having recently reported a record $101.2M profit in 2022, up $58M over the prior year, Friday Samsung global reported a 96% fall in profits.
2022 revenues at the Australian operation were $3.3 Billion compared to $2.96 Billion at December 2021, up $417M.
During the period Samsung dropped the price of several key products including TVs in an effort to generate sales.
This discounting has continued into 2023.
In 2022 a new director Hyung Il Kim was appointed at the Australian operation.
Dividends of $209,000,000 was declared on 16 December 2022 and paid on 19 December 2022.
During the past year, the business benefited from strong sales of its flagship Galaxy S23 series smartphones.
The good news comes as parent Company Samsung Electronics posted its worst quarterly earnings in 14 years in the second quarter 2023, however analysts are tipping a turnaround for the business which is set to launch a new range of foldable and flip smartphones and tablets on the 26th of July in South Korea.
It has moved the launch schedule forward from the usual August to July, a move that the business is hoping will positively impact their third-quarter earnings.
Global operating profits for the April-June period are estimated to be US$462 million, down 95.7 percent from a year earlier.
As for its earnings, the estimate is the worst since that of the first quarter of 2009.
Observers claim that the business is being impacted by a slowdown in demand for smartphones, appliances, and TV’s and that the business has struggled as inventories of DRAM and NAND flash memory chips bulged significantly amid weak demand from key customers in the period.
ChannelNews understands that 2023 revenues at Samsung Electronics Australia are down for the first six months of the year.
Analysts claim that the company is showing signs of being on the path to recovery, reducing its deficit in the memory chip business by cutting chip production and focusing more on high-priced products.
Recently the business picked up new contracts from Apple for OLED display panels that will be used in the new iPhone 15.
They further forecast that the tech giant will see a gradual chip inventory decrease in the coming months, as industrywide production cuts and a growing demand for inventory accumulation centred around high-performance PCs and Chinese smartphones.
Globally the Companies ‘Devices eXperience division is expecting a lift in revenues with the launch of new products this month.
While Samsung’s latest foldable smartphones — the Galaxy Z Flip 5 and Galaxy Z Fold 5 — are likely to be released in Australia in August they are also set to deliver revenues for the upcoming quarter and with insiders tipping that this will contribute to the company’s performance in the second half of this year.