LG Display revenues up 18%
January 26, 2022
By Chris Forrester
South Korea’s LG Display reported record revenues and solid profits for the quarter-year ending December 31st 2021.
· Revenues in Q4 of 2021 increased by 18 per cent to KRW 8,807 billion (€6.5bn) from KRW 7,493 billion in Q4/2020 and increased by 22 per cent from KRW 7,223 billion in Q3/2021.
· Operating profit in Q4/2021 recorded KRW 476 billion. This compares with the operating profit of KRW 678 billion in Q4/2020 and with the operating profit of KRW 529 billion in Q3/2021.
· EBITDA in Q4/2021 was KRW 1,645 billion, compared with EBITDA of KRW 1,766 billion in Q4/2020 and with EBITDA of KRW 1,696 billion in Q3/2021.
· Net income in Q4/2021 was KRW 180 billion, compared with the net income of KRW 615 billion in Q4/2020 and with the net income of KRW 464 billion in Q3/2021.
LG Display registered KRW 29.9 trillion in revenues and KRW 2.2 trillion in operating profit in 2021.
LG Display recorded all-time high revenue in 2021 with a year-on-year increase of 23 per cent compared to the revenue of KRW 24.3 trillion in 2020. The company’s annual operating profit surpassed KRW 2 trillion, moving it into the black in three years. These results are in large part due to the strengthening position of large-sized OLED panels in the premium TV market, solidifying its small and mid-sized OLED businesses, and structural innovation in the LCD business focusing on high-end IT products.
LG Display marked its record-high quarterly revenue of KRW 8,807 billion in the fourth quarter of 2021 with a year-on-year increase of 18 per cent and a quarter-on-quarter increase of 22 per cent. This is attributed to its enhanced business structure’s increased production of OLEDs and increased panel shipments for IT products. The company saw KRW 476 billion in operating profit compared to KRW 678 billion in the fourth quarter of 2020, mainly due to the decline in LCD TV panel prices and the one-off costs occurring at the end of the year, according to a company statement.
Panels for TVs accounted for 27 percent of the revenues in the fourth quarter of 2021, panels for IT devices including monitor, laptop, and tablet accounted for 42 percent, and those for mobile devices and others accounted for 31 percent.
Despite slowing demand, LG Display will secure and stabilize its business operation by continuously focusing on minimising market volatility caused by COVID-19. Thus, the company plans to expand its business with customers based on strategic cooperation rather than leaving the company vulnerable to market fluctuations. Furthermore, with its OLED technology, the company aims to enter new business areas such as gaming and transparent displays which will deliver new customer values and experiences. Meanwhile, LG Display’s large-sized OLED business continued to strengthen its position in the premium market despite the overall TV market declining by 13 per cent in 2021. OLED TV panel shipments increased by more than 70 per cent in 2021 compared to the previous year, turning into profit in the second half and reaching a break-even point for the year. This year, the company will further expand its profitability by leveraging its strengthened business capabilities and by achieving a year-on-year growth of over 20 per cent in panel shipments, states the company.
The LG Home Entertainment Company reported 2021 revenue growth of 30.6 per cent to KRW 17.22 trillion with operating profit increasing 18.1 per cent over the previous year to KRW 1.1 trillion, reflecting LG’s success in responding to the higher demand for premium TVs during the pandemic. Revenues in the quarter of KRW 4.99 trillion were 16.4 per cent higher than fourth quarter the prior year and up 19.2 per cent from the previous quarter owing to the growth in demand for premium OLED and large-screen TVs in key regions of Europe and North America.