Samsung announced FY17 Q1 result with group sales of KRW 50.5 trillion ($44.5 billion) and net profit of KRW 7.7 trillion ($6.7 billion), resulting in a healthy net profit margin of 15.2%. The sales were higher by a marginal 1.5% on yearly basis but lower by 5.2% compared to the previous quarter. However, the net profit showed significant growth of 46.3% on a yearly basis and 8.3% compared to the previous quarter. Similarly, the quarterly EBITDA margin increased to 29% from 24% in FY16 Q1 and 26% in FY16 Q4.
In the Display Panel business segment, OLED sales increased on a quarterly basis driven by solid demand for rigid panels and increased shipments of flexible panels due to expanding sales of new products. LCD sales also remained solid due to increased sales of high end products such as UHD/large-sized screens, under strong ASP/supply-demand conditions.
However, the same was not true for the IT & Mobile communication business segment as the smartphone/tablet market demand remained flat and the segment earnings decreased on account of declining S7 shipments. However, the situation is expected to improve in FY17 Q2 on account of S8 sales expansion.
