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Samsung Reports Worst Quarterly Profits In 14 Years

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Samsung Electronics, one of the largest makers of memory chips and smartphones, reported its worst quarterly profits in 14 years on Thursday.

 

The South Korean company saw a 95% drop in operating profit from the previous year, citing slowing consumer spending on electronics and a global microchip glut that impacted its core memory business.

 

In the first quarter, Samsung’s net income fell 86.1% to 1.57 trillion won, and sales dropped 18% to 63.75 trillion won. The firm’s chip division also reported a loss of 4.58 trillion won, its first operating loss since 2009. This was due to falling chip prices and weak demand caused by prolonged external uncertainties, according to the company.

 

Samsung shares were down 0.3% Thursday morning following the announcement of the results. This marks the third consecutive margin squeeze for Samsung, which saw a 70% fall in operating profits in the fourth quarter on-year.

 

While Samsung’s new flagship Galaxy 23 smartphones helped offset deficits in the chip sector in the first quarter, analysts predict that conditions in the coming months may worsen and even lead to Samsung’s first profit loss since 2008.

 

To address the oversupply of memory chips, Samsung announced plans to scale back production to a “meaningful” level.

 

South Korean chip maker SK Hynix and Micron Technology of the United States have also reduced production.

 

Demand for memory is expected to gradually recover in the second half of 2023, amid projections that customer inventory levels will have declined, according to Samsung.

 

However, the global economic slowdown has dealt a blow to memory sales, which swelled during the pandemic as consumers bought new computers and smartphones during lockdowns. Demand quickly diminished as lockdowns lifted and weakened further in the face of soaring inflation and rising interest rates.

 

The recent drop in profits has not deterred Samsung from making bold investments. In March, the company unveiled plans to contribute $227 billion over the next two decades to building the world’s largest chip center in Yongin, south of Seoul.

 

Overall, the semiconductor industry is highly likely to recover in the second half if cooperation among chip makers on production cuts goes well, according to a report released by Eugene Investment & Futures.

 

Samsung’s “active” efforts to get out of the inventory rut were “positively evaluated” considering its effect on market sentiment and demand for memory chips, the report added.

 

Despite the challenges, Samsung is still making bold investments, including contributing $227 billion over the next two decades to building the world’s largest chip center in Yongin, south of Seoul.

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Brands

Family Fun Unleashed: Indomie Love Bowl Premiering This Month

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The premiere of the “Indomie Love Bowl,” a family game show sponsored by Indomie in collaboration with Multichoice, is scheduled for October 22, 2023.

 

The 13-episode series will showcase three families per episode, competing for the coveted title and attractive prizes.

 

The victorious family in the reality show stands to gain significant rewards, with the first-place winners earning an impressive 5 million Naira.

 

The second and third-place families will receive 2.5 million Naira and 1.5 million Naira, respectively. Beyond the cash prizes, the winning families will relish a two-year abundance of Indomie products, renowned for their delightful flavor and quality.

 

Asiwaju Temitope, Head of Corporate Communications for Indomie, emphasized the brand’s deep connection with love and excitement in the food category as the driving force behind the show.

 

The primary goal of the show is to elevate values such as love within families, particularly emphasizing the special bonds between mothers and children.

 

The collaboration with Multichoice was a strategic move, leveraging its broad outreach and the widespread accessibility of DSTV in numerous households. This ensures the game show’s broad and impactful reach.

 

“We created this games show and we chose this with family represented by mums and children. It’s going to involve several families and winners willl emerge based on the programmes. 3 families will emerge as winners with consolatory prizes. We chose Multichoice because it is a big reach and there’s no home where you won’t find DSTV”.

 

Busola Tejumola, Executive Head of Content and West Africa Channels at Multichoice West Africa, underscored that the “Indomie Love Bowl” revolves around themes of unity, bonding, and the special affection between mothers and children.

 

Set to debut on October 22, 2023, at 7 pm on the Africa Magic Family channel, the show aims to deliver thrilling moments and dynamic interactions among family members.

Stephanie Coker, the show’s host and On-Air personality, expressed her joy in being involved in the project, particularly as a mother. She eagerly anticipated watching the show with her daughter, celebrating the special bond between mothers and children, the exciting games, and the evident team spirit. Coker also emphasized the chemistry with her co-host, Darasimi, promising an engaging experience for the audience.

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BUA Takes Bold Step: Slashes Price Of Cement

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BUA Cement PLC has declared a cut in the price of its cement product to N3,500 per bag, effective from Monday, October 2, 2023.

 

. The company cites its dedication to fostering growth in the building materials and infrastructural sectors as the reason behind this reduction.

 

The announcement was made through a statement posted on its X page, previously known as Twitter.

 

This decision follows the chairman, Abdul Samad Rabiu’s commitment to reviewing the product’s price after a meeting with President Bola Tinubu weeks ago.

 

The statement read in part, “We refer to our previous pronouncements regarding our intent to reduce cement prices upon the completion of our new lines at the end of the year, in order to spur development in the building materials and infrastructure sectors.

 

“As per the commitment made to reduce prices and following a periodic review of our operations for efficiency, the management of BUA Cement Plc wishes to announce and inform our esteemed customers, stakeholders, and the public that effective October 2, 2023, we have decided to bring the price reduction forward.

 

“As a result, BUA Cement would now be sold at an ex-factory* price of 3,500 Naira per bag so that Nigerians can begin to enjoy the benefits of the price reduction before the completion of our plants.

 

“Upon completion of the ongoing construction of our new plants, which would increase our production volumes to 17million metric tonnes per annum, BUA Cement PLC intends to review these prices further in line with our earlier pronouncements by the first quarter of 2024.”

 

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Again, Dangote Clinches ‘Brand of the Year’ Award

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Dangote Industries Limited has received the prestigious Brand of the Year award, acknowledging the company’s outstanding corporate performance in the past year.

 

At a ceremony held in Lagos, John Ajayi, the Publisher of Marketing Edge, clarified that the award conferred upon Dangote is the flagship recognition, highlighting the company’s consistent contributions to the economic advancement of Nigeria and Africa.

 

Mr. Ajayi emphasized that this recognition encompasses a broad spectrum of business investments and corporate initiatives carried out by Dangote across the African continent.

 

He noted “This recognition covers many business investments and corporate interventions carried out by the company in Africa as a continent.”

 

During the award presentation, he credited Dangote’s exceptional position in its industry to its robust efforts in generating employment opportunities, thereby positively impacting numerous youths.

 

Additionally, he praised Dangote Industries for its steadfast dedication to the development of vital infrastructure.

 

He highlighted that the award presentation marked a significant milestone during Marketing Edge’s 20th-anniversary celebration and the 11th edition of its annual Brands and Advertising Excellence Award.

 

Numerous other brands were also honored for their exceptional achievements in the market.

 

Mr. Ajayi underscored that Marketing Edge’s two-decade presence in the industry has firmly established it as a trustworthy and authoritative partner for all stakeholders in the Nigerian marketing and advertising landscape.

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