Samsung Electronic Co. Ltd has reported its highest profit in two years off the back of continued strong sales of its flagship Galaxy S7 and Galaxy S7 Edge smartphones.

The company reported revenue was 50.94 trillion won ($45.2 billion) in the second quarter, up 5 percent on a year ago, with operating profit coming in at 8.14 trillion won ($7.22 billion), up 18 percent.

Samsung’s IT & Mobile Communications Division led the figures with the sales of the Galaxy S7 products, combined with a streamlined mid to low end smartphone lineup delivering a profit of 4.32 trillion won ($3.83 billion).

Shipments of OLED and LCD displays, the latter having taken a hammering in the first quarter, saw a turnaround with the company reporting increased shipments of OLED panels and hence yields for new LCD TV panel production technology.

Samsung’s semiconductor business continued to grow as the company reported “solid growth” in demand in the second quarter of the back of higher shipments of high-density NAND and DRAM products.

The company’s Consumer Electronics Division delivered mixed results with Samsung describing the result as “solid” in a sluggish market, although it did report that sales of premium products such as SUHD TVs had increased slightly.

Forward projections

Samsung said that in the second half of 2016 it expects its solid performance to continue driven by earnings increases in the component business due to sales growth in high value-added products and stable demand and supply conditions.

The company added that it expects the component business to maintain its solid performance due to improved demand and supply conditions for memory chips and LCD panels and stable earnings for OLED and System LSI.

For the IT & Mobile Communications Division Samsung said it expected a sales boost following the launch of its forthcoming Galaxy Note 7 but warned that marketing expenditure is expected to rise due to a new flagship product launch and fierce competition in the industry, which is code for Apple, Inc.’s September launch of the iPhone 7.

In conjunction with the financials announcement Samsung also announced that it would buy back and cancel 1.79 trillion won ($1.58 billion) worth of shares in the final installment of its 11.3 trillion won ($10 billion) program.

Image credit: 91265124@N03/Flickr/CC by 2.0