Samsung SDS President Hong Won-pyo. (Photos: Samsung SDS)

Despite the protracted COVID-19 pandemic, Samsung SDS achieved its best-ever quarterly sales. The earnings surprise was owed to the expansion of the company’s logistics and IT service businesses.

Samsung SDS said on Oct. 27 the company posted 2.968.2 trillion won in sales and 219.8 billion won in operating profit in the third quarter of the year.

The figures represent a 15.6 percent surge in sales and a 1.8 percent jump in operating profit, compared to Q2. They shot up 11.7 percent and 6.4 percent, respectively, compared to the same period of the previous year.

The reason behind Samsung SDS’s good business performance is that companies executed investment plans that had been put on hold due to the spread of the COVID-19 pandemic in Q3, and the logistics business saw cargo volumes shoot up during the period.

The IT service business saw Q3 sales decline 2.9 percent compared to a year before, but it showed signs of recovery with a 1.1 percent rise over the previous quarter. It means that companies have resumed investment into the IT sector.

The business process outsourcing business chalked up 1.633.5 trillion won in Q3 sales, a 27.2 percent jump over a year earlier.

The business’s good business performance was attributable to a rise in the quantity of cargo transported on the back of a rising demand for TVs and other home appliances.

Samsung SDS President Hong Won-pyo said the company will proactively cope with companies’ rising demand for digital transformation in the wake of the pandemic.

“Above all, companies are forced to aggressively embrace digital transformation to survive in a new normal era,” he said. Samsung SDS is going to raise its standing as a “digital transformation provider” so that these changes can be transferred into new business opportunities, President Hong said.

Samsung SDS’s Credit Rating is ‘A1’

Samsung SDS said the company received an “A1” credit rating from the American financial services company Moody’s Investors Service.

Only global IT companies were rated at a credit rating higher than Samsung SDS’s credit rating. They included Microsoft, Apple, and Accenture.

Moody’s cited Samsung SDS’s strong points such as the continuous growth of the IT service market, a stable business portfolio targeting subsidiaries of Samsung Group and overseas client companies and financial performances.

In particular, Moody’s predicted that Samsung SDS will maintain the current credit rating since the company has secured abundant cash flows and financial soundness.

Moody’s forecast that Samsung SDS will see the IT service business continue to grow as companies and the government have expanded digital transformation.

The company is predicted to overcome the aftermath of the COVID-19 pandemic and achieve a 10 percent to 11 percent earnings before interest, tax and amortization (EBITA) in the year 2021-2022.

Samsung SDS is a global software solutions and IT services company. The company helps organizations optimize their productivity and make smarter business decisions using its enterprise software solutions for secure mobility, HPC managed services, DOOH, and advanced analytics and contextual marketing.

Samsung SDS enables its customers in government, financial services, retail, and other industries to drive business and improve their competitive positions in a hyper-connected economy.

“Our 30+ years of IT experience and knowledge expands across the industry, from data systems to system integration to software.

Samsung SDS is a full software solutions provider, always willing to provide innovative approaches as opposed to simply plugging-in simple software,” according to the company.

“The passion and determination to figure out the true needs of its customers has helped one of the world’s most recognized brands to reach its greatest potential.”