Yahoo Finance

• Revenue: KRW3.2 trillion, down 15% QoQ and 34% YoY.

• Operating Profit: Loss of KRW434 billion, including results from discontinued operations.

• Pretax Profit: Loss of KRW357 billion.

• Net Profit: Loss of KRW216 billion.

• Assets: Increased to KRW40.7 trillion, up by KRW113 billion from the end of 2024.

• Liabilities: Rose to KRW19.2 trillion, up by KRW143 billion YoY.

• CapEx: KRW774 billion for the first quarter.

• Battery Business Revenue: KRW2.98 trillion, down 16% QoQ and 35% YoY.

• Battery Business Operating Profit: Loss of KRW452 billion.

• Warning! GuruFocus has detected 9 Warning Signs with FRA:XSDG.

Release Date: April 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Samsung SDI Co Ltd (FRA:XSDG) began full-fledged operations at its US fab for prismatic batteries, enhancing its supply capabilities in the US.

• The company received recognition for its high-performance prismatic EV battery, which was awarded the President's Prize from the IR-52 Jang Young-shil Award.

• Samsung SDI Co Ltd (FRA:XSDG) is expanding its cylindrical battery applications, including a joint development with Hyundai Motor Group for specialized robot batteries.

• The Electronic Materials business saw a slight increase in revenue and improved profitability due to heightened demand for OLED materials.

• The company is actively pursuing joint ventures and investments in future technologies like LFP batteries, 46-phi, and all solid-state battery technologies to secure long-term growth.

Negative Points

• Samsung SDI Co Ltd (FRA:XSDG) reported a significant decline in first-quarter revenue, down 15% QoQ and 34% YoY, due to slowing market demand.

• The company recorded an operating loss of KRW434 billion in the first quarter, including results from discontinued operations.

• The Battery business experienced a 16% QoQ and 35% YoY decrease in revenue, with an operating loss of KRW452 billion.

• Market demand volatility, particularly in North America, is expected to persist due to tariff impacts, affecting the company's performance.

• The small battery market faces challenges with delayed power tool demand recovery due to high interest rates and inflation, impacting sales.

Q & A Highlights

Q: Could you provide a more detailed performance outlook for each business segment in the second quarter? A: This is Jong Sung Kim, CFO. We anticipate a substantial improvement in Q2 compared to Q1. For EV batteries, demand recovery in Europe is expected due to EV-friendly policies, despite high volatility in North America. ESS sales are projected to grow with the expansion of renewable energy and AI-driven power demand. Small battery demand is expected to recover in the second half, with significant loss reduction in Q2. Semiconductor and OLED materials sales are expected to increase, leading to revenue growth and improved profit margins.