SK hynix Announces 4Q24 Financial Results

Rhea-AI Summary

SK hynix reported record-breaking financial results for 2024, with revenues of 66.19 trillion won (up 102% YoY), operating profit of 23.47 trillion won, and net profit of 19.80 trillion won. The company achieved an operating margin of 35% and net margin of 30%.

Q4 2024 showed strong performance with revenues of 19.77 trillion won (up 12% YoY), operating profit of 8.08 trillion won (up 15% YoY), and net margin of 41%. HBM (High Bandwidth Memory) contributed over 40% of total DRAM revenue, while eSSD sales continued to grow.

The company's financial position improved significantly, with cash equivalents increasing by 5.2 trillion won to 14.2 trillion won and debt decreasing by 6.8 trillion won to 22.7 trillion won. SK hynix increased its annual fixed dividend by 25% to 1,500 won per share, with total cash dividends reaching 1 trillion won annually.

Positive

• Record-breaking annual revenue of 66.19 trillion won, up 102% YoY
• Strong Q4 operating margin of 41%, up from 3% in Q4 2023
• HBM products account for over 40% of total DRAM revenue
• Debt reduction of 6.8 trillion won
• 25% increase in annual dividend to 1,500 won per share
• Cash equivalents increased by 5.2 trillion won to 14.2 trillion won

Negative

• None.

• Revenues for 2024 at 66.1930 trillion won, operating profit at 23.4673 trillion won, net profit at 19.7969 trillion won
• Revenues for Q4 at 19.7670 trillion won, operating profit at 8.0828 trillion won, net profit at 8.0065 trillion won
• Achieving best-ever quarterly and yearly performance with increased sales of AI memory products including HBM and eSSD
• Company to affirm the possibility of achieving sustainable profit through differentiation of AI product competitiveness and profitability-oriented operation

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.

FAQ

What was SK hynix's revenue and profit for full year 2024?

SK hynix reported revenues of 66.19 trillion won, operating profit of 23.47 trillion won, and net profit of 19.80 trillion won for FY2024.

How much did SK hynix's HBM products contribute to DRAM revenue in Q4 2024?

HBM products contributed over 40% of total DRAM revenue in Q4 2024.

What is SK hynix's new dividend policy for 2024?

SK hynix increased its annual fixed dividend by 25% to 1,500 won per share, with total cash dividends reaching 1 trillion won annually.

How did SK hynix's debt position change in 2024?

SK hynix reduced its debt by 6.8 trillion won to 22.7 trillion won by the end of 2024, improving its debt ratio to 31% and net debt ratio to 12%.

What was SK hynix's Q4 2024 operating margin?

SK hynix achieved an operating margin of 41% in Q4 2024, up from 3% in Q4 2023.