Samsung SDS records record-high share of overseas sales of 71%

The overseas sales of South Korea's Samsung SDS comprises 71% of overall revenue, the highest rate since the company launched its business process outsourcing unit. Growth of its global operations this year has surged to the point that its sales in the Americas equal those in Korea.

In a quarterly report released on Tuesday, Samsung SDS posted overseas sales in this year's first three quarters of 9.2 trillion won ($6.8 billion), comprising 71.4% of overall sales of 12.9 trillion won. The rate was seven percentage points higher from that late last year and 7.9 points from the same period last year, as well as marking the highest level since 2013, when the company began tracking sales by region.

Exceptional results were seen in the Americas, with sales this year through the third quarter reaching 3.3 billion won, similar to those in Korea of 3.7 trillion won, and accounting for 26% of overall sales, up from 21.2% from the same period last year.

Revenue was also evenly distributed worldwide like in China (10%), Europe (15%), and Asia and Africa (23%).

The growth in sales abroad helped offset a steady decline in the share of domestic sales, which fell from 50%-60% in the mid-2010s to 39% in 2020 and 35% last year.

An industry pundit said, "Overseas sales of Samsung SDS have fluctuated this year due to high logistical rates and the weak won," adding, "The growth in its share of overseas sales over the years is a differentiated move in the system integration industry."

Samsung SDS's overseas sales accounted for most of its logistics revenue, which saw third-quarter sales of 2.7 trillion won, up 35.4% from the same quarter last year.

"We run a logistics business using platforms," a company source said. "The growth of sea shipping volume in the Americas along with a rise in that of inland transportation led to a massive jump in sales."

Write to Sungsu Bae at baebae@hankyung.com