Samsung just announced its financial results for the fourth quarter of 2020 and the full year, and the numbers look impressive for both periods. The company saw a 26% increase in profits for the October-December period alone, compared to the same three months in 2019, while sales edged up – just under 3%.
Samsung also saw an almost 30% increase in profits for the entire calendar year disrupted by the pandemic, while sales improved by KRW 6 trillion ($ 5.36 billion) on an annual basis, but a quarter of the gains (around KRW 1.4 trillion / $ 1.2 billion). ) were wiped out due to the “aggressive” exchange rate between the Korean won and the US dollar.
| Q4 2019 | Q4 2020 | Change | 2019 financial year | Tax 2020 | Change | |
| Returned | KRW 59.88 billion $ 53.61 billion |
KRW 61.55 billion $ 55.11 billion |
2.8% | KRW 230.4 trillion $ 206.2 billion |
KRW 236.81 billion $ 212 billion |
2.8% |
| Profit | KRW 7.16 trillion $ 6.41 billion |
KRW 9.05 billion $ 8.1 billion |
26.4% | KRW 27.77 billion $ 24.86 billion |
KRW 35.99 billion $ 32.22 billion |
29.6% |
The mobile division saw both sales and operating profit decline during the holiday period. The fourth quarter of 2020 recorded only KRW 2.4 trillion ($ 2.14 billion) in profits, 34% lower than the fourth quarter of 2019, and Samsung said this was due to lower prices. sales (from KRW 24.74 trillion / $ 22.13 billion to KRW 22.34 billion / $ 20 billion)) and marketing expenses. However, the annual results are in line with expectations following “continued efforts to optimize costs”.
Looking ahead, the first quarter of 2021 could be slow for the entire smartphone market. Nonetheless, the Korean company expects its revenue and profit to increase after the early introduction of the Galaxy S21 series, as well as “improving the product mix”.
Samsung’s golden goose in 2020 was the display business – the division recorded the highest selling mobile phone panels and saw a rise in the price of TV screens, resulting in a sharp increase in cash flow. While the next three months will not be the most impressive, Samsung is confident that its performance will be strong due to the increasing adoption of OLED panels by major consumers.
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