Leading South Korean battery manufacturer, Samsung SDI Co., announced a significant return to profit in the first quarter, primarily propelled by robust growth in energy storage system (ESS) sales.
According to its recent regulatory filing, Samsung SDI reported a net profit of 56.1 billion won ($38.1 million) for the quarter ending March. This marks a substantial improvement from the net loss of 216 billion won recorded in the prior year’s period.
This impressive financial turnaround was largely driven by expanded US-based production and sales of its advanced ESS batteries, complemented by a stronger global demand for high-margin cylindrical battery products.
Further contributing to these positive results were reduced corporate tax outlays.
While still reporting an operating loss, the figure significantly narrowed to 155.6 billion won from 434.1 billion won year-over-year. Concurrently, sales saw a robust increase of 12.6 percent, reaching 3.57 trillion won, up from 3.17 trillion won in the previous year.
Looking ahead, Samsung SDI anticipates a gradual yet consistent recovery in its overall performance starting from the second quarter, underpinned by an improving global market demand.
Within the critical electric vehicle (EV) battery segment, demand is forecasted to strengthen significantly. This growth is expected due to expanded incentives across Europe and the escalating total cost of ownership for traditional internal combustion engine (ICE) vehicles, according to the company’s projections.
Furthermore, to capitalize on the booming ESS market, Samsung SDI is strategically planning to significantly expand its US production and sales capabilities. This expansion aims to meet the rapidly increasing demand from energy-intensive artificial intelligence (AI) data centers.
