Samsung SDI sees 2020 profit increase 45%

Samsung SDI said on Thursday that it has posted 3.25 trillion won in sales and operating income of 246.2 billion won in the fourth quarter of 2020.

It is a rise of 15.3% and 1124.9%, respectively, from the same time period in 2019.

For entire year of 2020, Samsung SDI posted 11.29 trillion won in sales and operating income of 671.3 billion won, a rise of 11.86% and 45.26%, respectively, from 2019.

It is the second year that the company has posted over 10 trillion won in annual sales. It first reached the benchmark in 2019.

Recover in demand for electric vehicles had allowed it to supply more batteries, leading to the profit jump.

Samsung SDI’s energy business posted 2.62 trillion won in sales and 117 billion won in operating income. 

Europe’s high subsidy for electric vehicles and new energy storage projects in North America helped sale and profits, the company said.

The company’s electronics material business posted 622.2 billion won in sales. Sales from polaroid film dropped from seasonality. Customer’s adjustment of stocks lead to decline in semiconductor material sales as well. However, OLED material supply grew from launch of flagship smartphones.

Samsung SDI expects demand for battery to drop from in the first quarter from it being the off-season. Sales of ESS will continue to expand in the Americas but will drop in South Korea, the company expected.

For the full year of 2021, the company expected growth across the board, from EV batteries, ESS, small batteries, semiconductor material to OLED materials.

The global EV battery market will grow to 236GWh this year, an 80% increase year-over-year, Samsung SDI said. ESS market will grow to 29.8GWh, a jump of 57% from 2019. Small batteries will also grow 16% year-on-year, the company said.

Demand for semiconductor material will grow to customers’ expanded chip production. OLED material business will benefit from more mid-tier smartphones using OLED panels, Samsung SDI said.