Samsung has published its quarterly earnings report for Q4 2021. The company, which has been having a strong 2021 financially, ended the year with another record-breaking quarter. It posted an all-time high consolidated revenue of KRW 76.57 trillion (roughly $63.6 billion) during the last three months of the year. That tops the previous high of KRW 73.98 trillion the Korean firm made in the previous quarter.
Samsung’s Q4 2021 operating profit of KRW 13.87 trillion (~$11.5 billion) is also its four-year high for the fourth quarter. That’s despite a special bonus payment to employees. The company last time topped that figure in the year-ending quarter in 2017, posting a profit of KRW 15.15 trillion. Its Q3 2018 profit of KRW 17.5 trillion remains the highest in the Korean brand’s history.
For the full year of 2021, Samsung is reporting KRW 279.6 trillion (~$232.1 billion) in revenue. As you might have guessed, it is also a new historic high. The company’s operating profit for last year comes in at KRW 51.63 trillion (~$42.9 billion). That’s its highest since 2018 when it posted KRW 58.89 trillion in profit.
Samsung sees off 2021 on a strong note financially
2019 and 2020 weren’t the best years for Samsung in the market. Its financial performance dipped as it struggled to keep up with the competition in several major industries, including the smartphone industry. But the Korean behemoth redeemed itself last year. The Q4 2021 numbers it just shared clearly tell the story.
According to the company, smartphones, TVs, and home appliances saw strong demand during the period between October to December 2021. Foldable smartphones and premium consumer electronics items boosted its earnings.
A price drop means earnings from the memory business decreased. However, the foundry business posted a new record for quarterly revenue. Its semiconductor unit reported consolidated revenue of KRW 26.01 trillion in the fourth quarter. Operating profit came in at KRW 8.84 trillion, almost two-thirds of the overall profit.
Samsung’s Display manufacturing unit also saw improved financial performance this past quarter thanks to increased demand for smartphone panels. It posted KRW 9.06 trillion in consolidated revenue and KRW 1.32 trillion in operating profit during the year-ending three months.
Going forward, Samsung expects a drop in demand for smartphones, TVs, and home appliances in Q1 2021 from the previous quarter. But it is estimating a continued improvement for the mobile panel business.
The ongoing uncertainty around the component shortage could affect the tech industry this year as well. However, the Korean brand is preparing itself for the challenge. It plans to launch more Bespoke edition devices this year, among other things. We are already expecting a Bespoke Edition Galaxy S22. We should get confirmation about it soon. Stay tuned.