'The Power of Premium Appliances' LG Electronics Achieves Record Half-Year Sales and Operating Profit (Update)

[Asia Economy Reporter Suyeon Woo] LG Electronics achieved its highest-ever half-year performance in the first half of this year, driven by strong sales in its premium home appliance business.

On the 29th, LG Electronics announced that its sales and operating profit for the first half of this year reached KRW 34.9263 trillion and KRW 2.88 trillion, respectively, marking the highest half-year results in its history. Consolidated sales for the second quarter also recorded KRW 17.1139 trillion, with operating profit of KRW 1.1127 trillion. These represent increases of 48.4% and 65.5% compared to the same period last year. The sales figure is the highest ever for a second quarter, and the operating profit exceeded KRW 1 trillion for the second consecutive quarter for the first time ever.

H&A Business Division Sets Record for Highest Quarterly Sales for Two Consecutive Quarters

By division, the H&A Business Division achieved sales of KRW 6.8149 trillion and operating profit of KRW 653.6 billion. The second quarter sales, which broke the record for the highest quarterly sales, grew 32.1% year-on-year, driven by growth across all overseas regions. Operating profit improved by 6.8% year-on-year due to expanded sales and efficient resource management.

The steady popularity of LG Objet Collection, a space interior home appliance, led the H&A Business Division’s performance. Increased time spent at home also contributed to strong sales of convenience-enhancing products such as dryers, dishwashers, and cordless vacuum cleaners.

The HE Business Division recorded sales of KRW 4.0426 trillion and operating profit of KRW 333.5 billion. Both sales and operating profit increased by 79.1% and 216.4%, respectively, compared to the same period last year. Strong sales of premium TVs, including the LG OLED Evo, drove the performance growth. In particular, OLED TV sales surged significantly, accounting for more than 30% of total TV sales.

The VS Business Division posted sales of KRW 1.8847 trillion and an operating loss of KRW 103.2 billion. As demand from global automakers recovered, supply for major projects and sales of electric vehicle parts increased, doubling sales compared to the same period last year. However, operating losses widened compared to the previous quarter due to temporary cost increases such as rising parts prices caused by semiconductor supply issues for vehicles.

The BS Business Division achieved sales of KRW 1.6854 trillion and operating profit of KRW 61.7 billion. Continued strong sales of IT products such as PCs and monitors, along with a recovery in the construction market that boosted demand for information display products, led to a 28.9% increase in sales year-on-year. Operating profit slightly declined compared to the same period last year due to rising prices of key components and logistics costs.

Riding on Premium Home Appliances and Automotive Components, LG Electronics Aims to Keep Momentum in the Second Half

LG Electronics plans to strengthen its market dominance in core businesses such as home appliances and TVs in the second half, while accelerating growth in nurturing businesses like B2B to expand sales. The company also aims to secure profitability through continuous cost structure improvements and proactive, optimized operations aligned with market changes.

In the third quarter, overall sales are expected to increase year-on-year as premium home appliance and TV sales grow and the automotive parts business enters full-scale growth. However, risks from rising raw material prices remain, and LG Electronics plans to maintain stable profitability through efficient resource management and supply chain control.

The home appliance sector faces intensified competition among companies and cost pressures from rising raw material and logistics expenses. The H&A Business Division plans to sustain sales growth by enhancing product competitiveness and implementing tailored sales strategies by region and product. Operating profit is expected to remain at the same level as the previous year through cost structure improvements and optimized resource allocation.

In the TV market, demand for premium TVs is expected to continue increasing. The HE Business Division plans to expand sales centered on premium products including OLED TVs and maintain solid profitability.

The global automotive market is projected to gradually enter a semiconductor supply stabilization phase from the second half. The VS Business Division will focus on strengthening global supply chain management to secure key parts, maximize sales, and continuously reduce costs to improve profitability.

The B2B business is expected to gradually recover demand due to infrastructure investments in major countries following economic reopening. The BS Business Division plans to increase sales by expanding sales of premium products and secure profitability through efficient resource management.