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Storage company releases most recent earnings report

post @ August 11, 2022 09:29 Ella Maclin

● Operating profit of 4.193 trillion won, net profit of 2.877 trillion won, and combined sales of 13.811 trillion won.

● The second quarter quasi-revenue hit a record high, and the operating profit exceeded KRW 40,000 for the first time two quarters later.

● The investment strategy for the following year will be thoroughly thought out in light of the prediction of declining demand in the second half of the year.

SK Hynix published its financial report today (July 27) for the second quarter of the fiscal year 2022 that concluded on June 30, 2022. Consolidated revenue for the business was KRW 13.811 trillion, operating profit was KRW 4.193 trillion, and net profit was KRW 2.877 trillion in the second quarter of fiscal 2022. In the second quarter of the fiscal year 2022, the operating margin was 30% and the net profit margin was 21%.

For the first time in its history, the company's quarterly revenue exceeded 13 trillion won. Previously, the fourth quarter of last year saw the company's greatest quarterly sales of 12.377 trillion won.

According to SK Hynix, although the price of DRAM products fell in the second quarter, the price of NAND chips rose instead. And the rise in the business's overall sales resulted in an increase in revenue. In addition, the dollar's ongoing strength as well as the consolidation of the subsidiary Solidigm's results have also been helpful.

Moreover, the profitability increased because of improvement of the production yield of the key products, 176-layer 4D NAND and 10nm-class fourth-generation (1a) DRAM. And two quarters following the fourth quarter of last year,the corporation once again generated operating profits of over 4 trillion won and an operating margin of over 30%.

Financial Statements for the Second Quarter of Fiscal 2022 Subject to the consolidated report

Unit: Billion KRW

2nd quarter of fiscal 2022

1st quarter of fiscal 2022

Quarter on quarter

2nd quarter of fiscal 2021

Year on year

Revenues

13,811.0

12,155.7

14%

10,321.7

34%

Operating profit

4,192.6

2,859.6

47%

2,694.6

56%

Operating margin

30%

24%

7%P

26%

4%P

Net profit

2,876.8

1,982.9

45%

1,988.4

45%

Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2022. Readers should not assume that this information remains operative at a later time. In addition, this information many include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to SK hynix Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of SK hynix Inc.

Please note that the financial results discussed herein are preliminary and speak only as of June 30, 2022. Readers should not assume that this information remains operative at a later time. In addition, this information many include forward-looking statements that involve a variety of risks and uncertainties that could cause actual results to differ materially. For further discussion of these risks and uncertainties, readers should refer to SK hynix Inc.’s filings with the Korea Exchange. This document is neither an offer to sell nor a solicitation of an offer to sell any security of SK hynix Inc.

● In the first quarter of fiscal 2022, the company's consolidated revenue was KRW 12.156 trillion, operating profit was KRW 2.860 trillion, and net profit was KRW 1.983 trillion.

● The company's operating profit for the fourth quarter of fiscal 2021 was KRW 4.220 trillion.

The company said, "It is significant to have achieved good commercial success despite the challenging economic climate, such as global inflation, protracted Russian and Ukrainian conflicts, and COVID-19 lockdown in some regions of China.”

The second half of the year, according to SK Hynix, will see a slowdown in the demand for memory. This is due to the fact that memory-equipped PC and smartphone shipments are anticipated to decline more than previously anticipated. Additionally, because customers will preferentially use up their stocks, the demand for server RAM provided to data center clients is also anticipated to slow down. However, the business anticipates that over the medium to long term, data center memory demand would increase gradually.

In terms of the long-term business strategy, SK Hynix said it will carefully examine the investment plan for the following year while keeping an eye on product inventory levels in the second half of the year.

Kevin (Jongwon) Noh, president & chief marketing officer (CMO) of SK hynix said:“Despite recent increases in business climate uncertainties,we have confidence in the memory industry's prospects for long-term growth.While being flexible in our adaptation to changes in the business environment, our main goal is to increase core business competitiveness.”

post @ August 11, 2022 09:29 Ella Maclin views(97) comment(0)
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