Samsung SDI reports very strong financial results in the second quarter of 2021, including record quarterly revenues (up 30% year-over-year) and operating profit growth of 184% year-over-year. The net profit margin is also very high at 8.6%.
The South Korean manufacturer, which is also one of the largest lithium-ion EV battery suppliers, says that all divisions are expected to grow further.
For us, the most important part is about the battery business, buried in the "Energy and others" category. According to Samsung SDI, the profitability of the battery business "increased significantly" in the Q2.
Samsung SDI Q2 2021 results
- Revenue: 3,334 billion KRW, ≈$2.91 billion (up 30.3% year-over-year)
- Revenue (Li-ion Battery - xEV and non-automotive):
2,712 billion KRW, ≈$2.37 billion (up 41.2% year-over-year)
81% of total revenue
- Net Profit: 288 billion KRW, ≈$250 million
8.6% of net margin
Samsung SDI notes increase in sales and profitability of both battery types - prismatic automotive batteries and batteries for energy storage systems.
Also the small capacity cylindrical cells are selling better - we guess that it's thanks to the volume supplies to Rivian, as the company mentions a "new EV project". Fell free to leave us a comment if you think it's related to another company.
"Automotive & ESS battery revenue grew significantly compared to the last quarter. It improved profitability and turned a profit with increased sales to major European clients. ESS saw an increased revenue from the U.S. utility project.
For small battery, cylindrical battery revenue went up as it starts its supply to the new EV project, and pouch battery revenue also went up thanks to flagship smartphones."
The market outlook for the second half of the year is very promising. Samsung SDI expects that all types of batteries will sell better.
"Automotive & ESS battery will see increased sales and profitability. EV battery will improve profitability as the supply to the new model begins and sales go up, and ESS battery will also see increased sales in Europe and Asia.
Small battery will also grow in the second half. Cylindrical battery will see larger volume in EV sales, and the sales for major applications such as power tools, vacuum cleaners and E-bikes will continue growth. Pouch battery will also go up with the launch of new smartphone."
It will be now very interesting to see whether the rumors about the contract for the Volkswagen Group's unified prismatic cell format program were true.