LG Display Posts Consecutive Quarterly Profits for 2nd Quarter Amid Untact Demand Expansion (Update)

[Asia Economy Reporter Suyeon Woo] LG Display recently achieved two consecutive quarters of profit due to the boom in TV and IT products driven by the expansion of untact demand.

On the 27th, LG Display announced that it achieved Q4 2020 sales of 7.4612 trillion KRW and operating profit of 685.5 billion KRW. Compared to the previous year, sales increased by 16% and operating profit turned positive. Compared to the previous quarter, sales rose by 11% and operating profit increased by 318%. Last year's annual sales were 24.2301 trillion KRW, with an operating loss of 29.1 billion KRW.

In Q4, strong demand for TV and IT products due to the spread of work-from-home culture caused by COVID-19 and increased shipments of large OLED and POLED panels raised shipment area by 5% and price per area by 12% compared to the previous quarter, boosting sales.

LG Display explained that the increase in operating profit was due to solid shipment and price trends as well as the gradual results of its three major strategic tasks: ▲ OLED mainstreaming ▲ strengthening the POLED business foundation ▲ LCD structural innovation.

In particular, meaningful performance improvements were seen through increased production based on the full-scale operation of the Guangzhou OLED factory, which expanded sales of OLED TV panels, and the stable operational foundation of the POLED business. Additionally, IT and TV LCD panels, which create differentiated competitiveness, have continuously contributed to profit improvement.

By segment, IT panels accounted for the largest share at 37%, TV panels accounted for 29%, and mobile panels and other sales accounted for 34%.

Q4 net profit was 621 billion KRW, and EBITDA, which adds amortization of tangible and intangible assets to operating profit, reached 1.7743 trillion KRW. As operating profit improved, the EBITDA margin also increased significantly, reaching 24%, the highest level in 15 quarters.

Seodonghee, LG Display CFO (Chief Financial Officer), described the Q4 results as "an achievement made by nimbly responding to the untact non-face-to-face market environment to maximize market opportunities and the expansion of sales in the OLED sector."