LG Q1 boosted by home appliance sector
April 25, 2024
LG Electronics has announced first-quarter 2024 consolidated revenue of KRW21.09 trillion (€0.014tn) and operating profit of KRW1.33 trillion.
The company’s home appliance sector achieved record-breaking revenue and double-digit operating profit margins. The EV components sector, a key driver of future growth, continued its steady expansion. Both the TV and business solutions sectors experienced year-on-year sales growth and returned profits compared to the previous quarter.
In a press statement, the company said: “Despite navigating challenging macroeconomic conditions such as high commodity prices, volatile exchange rates, rising interest rates and delayed demand recovery, LG achieved its highest-ever total revenue for a first quarter. This milestone underscores the effectiveness of implementing sustainable business models like subscription services and leveraging growth opportunities in the promising B2B sector. LG’s emphasis on differentiating features such as AI, energy efficiency and customer-centric design has strengthened its competitiveness in the premium market. Furthermore, the strategic approach of offering diverse product lineups and flexible pricing structures enabled the company to successfully navigate polarised demand trends.”
The LG Home Entertainment Company reported first-quarter revenue of KRW3.49 trillion and an operating profit of KRW132.2 billion. This represents a 4.2 percent increase in revenue compared to the same period last year, driven by a resurgence in TV demand in Europe and the launch of new 2024 models. The positive operating profit was fueled by the performance of the webOS content/service business, alongside traditional product sales. Despite challenges such as rising LCD panel prices, the company says it effectively managed profitability.
Looking ahead, a gradual recovery in the TV market demand is anticipated in the second half of the year. LG’s strategy focuses on leveraging its globally leading OLED TV and premium LCD QNED TV offerings while enhancing the profitability of the webOS platform business, which is poised for rapid growth.
This year, the overall IT market is expected to maintain similar demand levels to the previous year, with a slight growth anticipated in the commercial display segment. There is an expected increase in demand for high-spec IT products like gaming monitors and LED signage. LG aims to lead the market with strategic IT products tailored to customer needs, integrating gaming-specific features and OLED displays, alongside premium LED products. Efforts to proactively develop new businesses, such as robotics and EV charging, continue to drive future growth prospects.