South Korean technology giant Samsung Electronics announced today Net profit for 2023 decreased by 72.2% The slow recovery in chip demand showed signs of improvement in the last quarter, reaching 15.49 trillion won (about $11.6 billion) compared to the previous year.
The company’s gross operating profit (EBITDA) last year was 11.01 trillion won ($8.285 million), 71.98% lower than in 2022, while its operating profit was 84.9% lower, totaling 6.56 trillion won (USD). 4,935 million dollars). Headquartered in Suwon (south of Seoul), the company’s full year turnover was 258.93 trillion won ($194.86 billion); which means: 14.3% decrease compared to previous year’s data.
For the October-December 2023 quarter, Samsung Electronics reported a net profit of 6.34 trillion won ($4.8 billion) and EBITDA of 3.52 trillion won (2.645 million), representing a year-on-year decline of 73.4%. This means 10.6% less than in the same quarter of 2022. Operating profit for the period decreased by 34.4% to 2.82 trillion won ($2,120 million), while sales revenue in the last quarter of last year was 67.77 trillion won ($50.95 billion), 20% compared to the same period in the previous year. 3.8 less.
these figures In line with the prediction results published by Samsung earlier this month and was slightly above most local analysts’ forecasts. Revenue and operating profit for the fourth quarter increased compared to the third quarter (0.56% and 16.04%, respectively), due to better performance in the semiconductor branch due to the increase in prices and the continued strong performance of premium product sales from storefronts. department, the company explained in a statement.
The company expects the launch of new products such as smartphones and personal computers equipped with artificial intelligence (AI) functions in early 2024. Improvement in demand for chips, its core business. But he thinks the current situation, where customers tend to reduce inventories (which has led the South Korean giant to significantly reduce production this year), could mean “revenue will not recover significantly.”
In any case, Samsung has assured that its foundries will focus on improving performance and optimizing its most advanced 3-nanometer and 2-nanometer integrated circuits, which it plans to begin mass production in 2025.