Samsung has begun 2022 with a bang, financially. The Korean behemoth posted its highest-ever quarterly consolidated revenue in Q1. The operating profit for the January to March 2022 period is also its highest first-quarter profit since 2018.
Samsung has just published its Q1 2022 earnings report and the numbers are staggering. The company reported consolidated revenue of KRW 77.78 trillion (roughly $61.15 billion) for the first three months of the year. That’s up 18.9 percent from KRW 65.39 trillion in Q1 2022. Perhaps it’s a record in the company’s history. Its previous all-time high quarterly consolidated revenue came in Q4 2021, i.e. the last quarter, when it posted KRW 76.57 trillion. The Korean behemoth has reported record-breaking quarterly revenue for the third straight quarter.
Samsung’s operating profit of KRW 14.12 trillion (~$11.10 billion) for Q1 2022 is also higher than the KRW 13.87 trillion it made last quarter. More importantly, it’s a massive 50.5 percent increase from KRW 9.38 billion of profit the company reported in the first quarter last year. The latest figure is its highest first-quarter profit since Q1 2018 when it made KRW 15.64 trillion.
All Samsung business divisions posted a solid profit in Q1 2022
According to Samsung’s official report, the solid financial performance in Q1 2022 is a result of an all-around growth. As always, the semiconductor division was its biggest cash cow this past quarter. It contributed almost 60 percent (KRW 8.45 trillion) of the total profit. The Korean firm is the world’s largest memory chip maker. Even its foundry business achieved its highest-ever first-quarter sales this past quarter.
The mobile experience business, which includes smartphones, contributed KRW 3.82 trillion in operating profit. Strong sales of the Galaxy S22 flagships, as well as the low-cost Galaxy A-series handsets, have driven the growth amid “a weak seasonality and geopolitical uncertainties.”
Samsung’s display manufacturing arm also saw increased demand in Q1 2022. Mobile displays, in particular, were in high demand, helping the company grow its earnings. The Korean firm generated KRW 7.97 trillion in consolidated revenue and KRW 1.09 trillion in operating profit from the display business this past quarter.
Going forward, Samsung expects a decline in quarter-on-quarter earnings for both mobile and display businesses in Q2 2022. The COVID-19 concerns and a weak seasonality may affect the businesses.
However, the Korean company is quite optimistic about its semiconductor business. It is planning to begin the mass production of its 3nm processors based on the GAA (gate-all-around) process later this year. Samsung is currently working on improving the yield rate of its first-generation GAA process (3GAE). Its 3nm chips will use the second-generation GAA process (3GAP).