Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS) = Samsung Electronics has announced that its Q1 2023 earnings with consolidated sales of KRW 63.75 trillion and operating profit of KRW 640 billion won.

This is a result of an 18.1% drop in sales and a 95.5% decrease in operating profit year-on-year. Also, both fell by 9.5% and 85.1% compard to last quarter. The sales collapse in the first quarter was attributed to a weakened customer confidence due to global economic uncertainty and economic slowdown.

While operating profits were improved in DX and MX divisions. However, profit of component business was dragged down by the sluggish demand. Operating profit margin also plunged to 1.0%, down 5.1%p. Especially, it was the first time that Samsung Electronics failed to reach KRW 1 trillion in quarterly operating profit in 14 years since 2009.

Samsung had never recorded losses before thanks to its strong sales in its smartphone business in DX sector despite its sluggish in the semiconductor business.

Meanwhile, Samsung Electronics said it expects a gradual recovery as global demand is prospected to be recovered in the second half of 2023.

By Eun-young Huh(eunyoung114@nspna.com) and Bok-hyun Lee(bhlee2016@nspna.com)

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