Samsung Electronics Q1 net profit up 13.55%

Samsung Electronics said Thursday its net profit advanced 13.55 per cent on-year to 5.25 trillion won (S$6.17 billion) in the first quarter, on the back of brisk sales of its latest flagship smartphones.

Sales gained 5.65 per cent on-year to 49.7 trillion won, while operating profit rose 11.65 per cent to 6.67 trillion won, Samsung said in its regulatory filing. The results were mostly in line with an earnings guidance released earlier this month.

Samsung said its IT and mobile communications business posted an operating profit of 3.89 trillion won, up 42 per cent from a year earlier. The company attributed the performance to the strong sales of the Galaxy S7 series, which went on sale in March.

The tech firm has been suffering from the sluggish performance of its mobile division, especially due to competition from Chinese rivals.

The company said the Galaxy S7 is gaining popularity around the globe, including in North America and Europe.

The Galaxy S7 and Galaxy S7 Edge smartphones were first showcased at a trade fair in Spain in February.

Samsung's chip business, which emerged as the firm's new main source of profit for last year amid sagging smartphone sales, posted an operating profit of 2.63 trillion won, down 10 per cent from the 2.93 trillion won posted a year earlier.