(MENAFN) In a striking turnaround, Samsung Electronics has reported a staggering increase in operating profits, soaring more than 10-fold year-on-year in the first quarter of this year. This remarkable growth was primarily propelled by the resurgence of its chip business, which returned to profitability for the first time in five quarters during the last quarter of 2022. According to a regulatory filing, Samsung's operating profits surged to 6.6 trillion won (USD4.8 billion) in the January-March period, marking a remarkable increase from 640.2 billion won (approximately USD460 million) in the same period last year—an astounding 943 percent rise.
The company's robust performance extended to its sales figures, with Samsung Electronics recording sales of 71.9 trillion won (USD52.3 billion) in the first quarter, reflecting a notable increase of 12.8 percent compared to the corresponding period last year. Furthermore, net profits witnessed a significant uptick, soaring by 329 percent to reach 6.75 trillion won (USD4.9 billion) during the same period. These figures notably surpassed market expectations, with operating profits exceeding projections of 5.9 trillion won (USD4.3 billion), according to Reuters.
A key highlight of Samsung's first-quarter performance was its substantial investment in research and development, amounting to 7.82 trillion won (USD5.7 billion)—the largest quarterly investment reported by the company. This investment underscores Samsung's commitment to innovation and technological advancement, positioning it for continued growth and competitiveness in the global market.
The resurgence of Samsung's chip business played a pivotal role in driving its overall performance, contributing significantly to the company's sales and profitability. During the January-March period, the chip business achieved sales of 23.1 trillion won (USD17 billion), accompanied by operating profits of 1.91 trillion won (USD1.4 billion). This resurgence signals a promising trajectory for Samsung Electronics, reaffirming its position as a key player in the semiconductor industry and underlining its resilience in navigating challenging market conditions.
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