LG Electronics Achieves Record Sales Last Year, Profitability Still a Challenge

 

 

 

 

LG Electronics achieved record-high consolidated sales last year, driven by strong performance in its vehicle components and home appliance businesses.

LG Electronics announced on the 23rd that its sales for last year reached KRW 87.7282 trillion, a 6.6% increase from the previous year.

This marks a new all-time high, surpassing the KRW 82.5215 trillion recorded in 2022. All business divisions contributed to the growth.

However, operating profit for the year fell by 6.4% to KRW 3.4197 trillion. Net profit dropped sharply by 48.6% to KRW 591.4 billion.

It is analyzed that sluggish global demand for home appliances and rising logistics costs in the second half of the year impacted performance.

The H&A Business Division, responsible for home appliances, recorded sales of KRW 33.2033 trillion last year, achieving double-digit growth.

The revenue from its home appliance subscription service surged by 75% year-on-year to approximately KRW 2 trillion, driving growth.

Operating profit also exceeded KRW 2 trillion for the first time in three years, reaching KRW 2.0446 trillion.

The HE Business Division, which oversees TVs, reported sales of KRW 15.2291 trillion and operating profit of KRW 315.9 billion.

Revenue from the webOS-based smart TV operating system advertising and content business surpassed KRW 1 trillion annually, while sales of OLED TVs increased in the European and Asian markets, driven by global sports events.

The VS Business Division, which handles vehicle components, recorded sales of KRW 10.6205 trillion, exceeding KRW 10 trillion for the second consecutive year. Despite high order backlogs driving performance, increased R&D investment for software-defined vehicles (SDVs) limited operating profit to KRW 115.7 billion.

Meanwhile, the BS Business Division posted sales of KRW 5.6871 trillion but incurred an operating loss of KRW 193.1 billion due to rising raw material costs and intensified market competition.

Amid global market uncertainties last year, LG Electronics aims to secure a stable profit structure through qualitative growth.

The H&A Business Division plans to target global markets with AI technology and region-specific products while expanding its subscription business to countries like Thailand and India.

The HE Business Division will strengthen premium TV sales and develop webOS into an integrated content platform.

The VS Business Division aims to enhance profitability by strengthening SDV technological capabilities, while the newly established ES Business Division will enhance local production systems to grow its HVAC business into a global top-tier player.

An LG Electronics spokesperson stated, "We aim to achieve sustainable growth through business portfolio innovation and enhanced quality and cost competitiveness."

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LG Electronics Achieves Record Sales Last Year, Profitability Still a Challenge