Samsung's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1969 and headquartered in Seoul, South Korea, Samsung is a company active in the electronics sector. Its main business is the manufacture and distribution of electronic products. At Samsung, the year 2020 was marked by the Covid-19 health crisis. Despite the adverse effects of the pandemic, the group performed well. As a result, its financial performance has been strong in the first three quarters of fiscal 2021. Here are the key points to remember about the company's results.

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Samsung's revenue and market capitalization
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Q4 and full year 2020 performance

In the fourth quarter of fiscal 2020, Samsung continued to operate under the impact of the Covid-19 pandemic. In particular, this quarter was marked by lower demand for the company's various products. Despite all these factors, the Korean group performed well, driven by increased demand for semiconductors and displays.

However, the results for this period were not as good as the previous quarter. In the last three months of this year, the company had consolidated sales of 61.55 trillion won (about $55.33 billion). In Q4-2020, smartphone sales grew, driven by the recovery of the global economy and strong demand at the end of the year.

For the quarter, revenue from the smartphone division was 22.34 trillion won ($20.03 billion). Operating profit was 9.05 trillion won (about $8.13 billion). This represents an increase of 26.4% year-on-year. However, it was down 26.7% compared to Q3-2020.

This decline is due in particular to the fall in memory prices and a slight decrease in sales. It is also due to the negative effect of the Korean won. The smartphone division posted an operating profit of 2.42 trillion won (about $2.17 billion) in the quarter under review.

For the full twelve months of fiscal 2020, South Korean giant Samsung posted consolidated sales of 236.81 trillion won (about $212.82 billion). Annual operating profit was 35.99 trillion won (about $32.33 billion).

 

Group business review in the first quarter of 2021

In the first quarter of 2021, the Samsung Group's business grew. This can be seen in the company's results for the period. Between January and March, the South Korean technology giant achieved consolidated sales of 65.39 trillion won (approximately $59.04 billion).

This is a 6% increase on the last quarter of the previous year. In Q1-2021, sales of smartphones, televisions and other home products increased by 18%. However, the group's semiconductor and display businesses reported a decline in the quarter.

The technology group posted an operating profit of 9.38 trillion won (about $8.47 billion) in the first three months of fiscal 2021. This is up 4% from Q4-2020. In fact, strong sales of smartphones and consumer electronics helped the company offset falling display and semiconductor revenues.

 

Samsung's Q2 2021 results

Samsung's results continued to improve in the second quarter of 2021. The company recorded its fourth consecutive quarter of increased sales and profits. For the period as a whole, the South Korean tech giant posted sales of 63.67 trillion won ($55.2 billion).

It reported year-on-year growth of 20.2%. Between April and June 2021, the group's operating profit was $10.8 billion, up 54.3% from the same time last year. The strong results for the quarter were driven by a strong performance from the semiconductor business.

The semiconductor business accounted for more than half of the Group's quarterly operating profit and represented approximately 35% of sales. The semiconductor division's revenues reached $19.7 billion in Q2-21, up 25%. Operating profit was $6 billion, up 27%.

 

Performance in Q3 2021

The Samsung Group continued its growth momentum in the third quarter of 2021. Results for the quarter were strong. For the period as a whole, the company's revenue was 73.98 trillion won (approximately $63 billion).

This is an increase of 10.4% compared to the same period last year. Between July and September 2021, the electronics giant recorded an operating profit of 15.82 trillion won (about $13 billion), up 26% from the previous third.

Indeed, the good results of this quarter were driven by the good dynamics of the semiconductor business. It generated revenues estimated at around $8.5 billion. Its operating profit increased by 82% in the quarter.

 

About Samsung's dividend and market capitalisation

For the fiscal year 2020, the group has decided to pay a record dividend to its shareholders. The total dividend is estimated at 13.12 trillion won (€9.69 billion). This corresponds to 1932 won per share (1.43 euro per share). Also, the company pointed out that this amount includes a special dividend of 1578 won per share.  

Furthermore, Samsung reports a remarkable presence in the financial markets. It is listed on the Korean Stock Exchange. At the end of December 2020, its market capitalisation is estimated at more than 400 billion dollars.

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