Operating Profit Tops KRW51tr
Samsung Electronics’ sales in 2021 were estimated at 279.4 trillion won, the highest-ever figure since its foundation in 1969. The stellar performance was driven by semiconductors, household appliances, and mobile devices. LG Electronics also posted the largest sales ever in 2021.
Samsung Electronics announced its tentative business performance in 2021 on Jan. 7. It earned 51.57 trillion won in operating profit on sales of 279.4 trillion won. The sales figure was 14.4 percent higher than the previous highest sales of 243.77 trillion won in 2018. Its operating profit was the third highest after 58.88 trillion won in 2018 and 53.64 trillion won in 2017.
Analysts say that Samsung's performance in 2021 is quite meaningful in that it was achieved despite unfavorable external conditions.
This announcement is a tentative tally of the company’s overall business performance, with the final tally for each business division scheduled to come out on Jan. 27. Analysts say that the semiconductor business division drove the company's growth, as it posted nearly 100 trillion won in sales and accounted for 60 percent of it total operating profit.
In the finished product business, which is the domain of the Device Experience (DX) Division, growth was led by the video display (VD) department, which topped the world’s TV market for 16 consecutive years, and the household appliance department, which boosted profitability through a focus on premium products. The Mobile Experience (MX) Division, which is under the DX Division, expanded its presence in the global smartphone market with its foldable smartphone Galaxy Z series and the mid-priced Galaxy A series. The Network Business Division is also continuing to win orders for 5G mobile communication equipment.
As the semiconductor business is expected to be brisk in 2022, Samsung Electronics is expected to reach 300 trillion won in sales for the first time this year.
LG Electronics announced on the same day that its sales and operating profit in 2021 were estimated at 74.72 trillion won and 3.86 trillion won, respectively, The company's sales exceeded 70 trillion won for the first time. Its operating profit was the second best after the record high of 3.9 trillion won in 2020.
LG Electronics is expected to become the No. 1 player in the global household appliance market in 2021. Sales of the company's H&A Business Division exceeded those of Whirlpool by 2.3 trillion won from January to September 2021. LG is believed to have outsold Whirlpool in the fourth quarter of 2021 because Whirlpool suffered sales disruptions due to damage to its supply chain and lack of semiconductors.