SEOUL, South Korea, Jan. 22, 2025 /PRNewswire/ — SK hynix Inc. (or “the company”, www.skhynix.com) announced today that it recorded best-ever yearly performance with 66.1930 trillion won in revenues, 23.4673 trillion won in operating profit (with an operating margin of 35%), and 19.7969 trillion won in net profit (with a net margin of 30%).
Yearly revenues marked all-time high, exceeding the previous record in 2022 by over 21 trillion won and operating profit exceeded the record in 2018 during the semiconductor super boom.
* FY2022 Yearly Revenues: 44.6216 trillion won / FY2018 Yearly Operating Profit: 20.8437 trillion won
In particular, fourth quarter revenues went up by 12% to 19.7670 trillion won, operating profit up 15% to 8.0828 trillion won (with an operating margin of 41%) from the same period last year and net profit recorded 8.0065 trillion won (with a net margin of 41%).
SK hynix emphasized that with prolonged strong demand for AI memory, the company achieved all-time high result through world-leading HBM technology and profitability-oriented operation.
HBM continued its high growth in fourth quarter marking over 40% of total DRAM revenue and eSSD also showed constant increase in sales. With remarkable product competitiveness based profitability-oriented operation, the company established a stable financial condition which led to improved outcome.
Annual result of 2024 demonstrated memory company’s possibility of stable profit gain by supplying product in right time to meet customers’ needs. Especially, in which the memory sector is being transformed into a high-performance, high-quality market with growth of AI memory demand.
Based on the financial result, at the end of 2024, cash equivalent increased by 5.2 trillion won to 14.2 trillion won and debt decreased by 6.8 trillion won to 22.7 trillion won compared to the end of 2023, leading the significant improvement in the debt ratio and net debt ratio to 31% and 12% respectively.
SK hynix forecasts that the demand of HBM and high density server DRAM, which is essential in high performance computing, will continue to increase as the global big tech companies’ investment in AI servers grow and AI inference technology gains importance. In the consumer market, which inventory adjustment is expected, sales of PC and smartphones equipped with AI will expand and the market situation will pick up in the second half of the year.
Therefore, the company plans to expand HBM3E supply and develop HBM4 in right time to meet customers’ needs. With stable demand, the company aims to push for the transition to advanced process, necessary for the production of competitive DDR5 and LPDDR5. For NAND, as last year, the company plans to meet the market with profitability-oriented operation and flexible sales strategies.
SK hynix raised the annual fixed dividend by 25% to 1,500 won a share from 1,200 won and hiked total amount of the cash dividend to 1 trillion won annually. Along with the raise, the company decided to put aside 5% of the free cash flow, which was formerly included in the dividend policy, for enhancement of the financial structure.
“With significantly increased portion of high value-added products, SK hynix has built fundamental to achieve sustainable revenues and profits even in times of market correction.” said Kim Woohyun, Vice President and Chief Financial Officer (CFO) at SK hynix. “While maintaining the profitability-first commitment, the company will make flexible investment decisions in line with market situation.”
■ FY2024 Financial Results (K-IFRS)
*Unit: Billion KRW
FY24
YoY
FY23
Change
Revenues
66,193.0
32,765.7
102 %
Operating
Profit
23,467.3
-7,730.3
Turn to
profit
Operating
Margin
35 %
-24 %
59%p
Net Income
19,796.9
-9,137.5
Turn to
profit
■ 4Q24 Financial Results (K-IFRS)
*Unit: Billion KRW
4Q24
QoQ
YoY
3Q24
Change
4Q23
Change
Revenues
19,767.0
17,573.1
12 %
11,305.5
75 %
Operating
Profit
8,082.8
7,030.0
15 %
346.0
2,236 %
Operating
Margin
41 %
40 %
1%p
3 %
38%p
Net Income
8,006.5
5,753.4
39 %
-1,379.5
Turn to
profit
※ Financial information of the earnings is based on K-IFRS
※ Please note that the financial results discussed herein are preliminary and speak only as of January 23, 2025. Readers should not assume that this information remains operative at a later time.
About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world’s top tier semiconductor supplier offering Dynamic Random Access Memory chips (“DRAM”), flash memory chips (“NAND flash”) and CMOS Image Sensors (“CIS”) for a wide range of distinguished customers globally. The Company’s shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com, news.skhynix.com.
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SOURCE SK hynix Inc.
