LG Energy Solution Reports Record Quarterly Operating Profit of 731.2 Billion KRW and Sales of 8.2 Trillion KRW (Comprehensive)

LG Energy Solution has achieved the highest quarterly operating profit in its history.

LG Energy Solution announced in its preliminary earnings disclosure on the 11th that it recorded sales of KRW 8.2235 trillion and an operating profit of KRW 731.2 billion in the third quarter of this year. This is the highest quarterly operating profit ever, representing a 40.1% increase compared to the same period last year. Sales during the same period rose by 7.5%.

Initially, the securities industry predicted that LG Energy Solution would achieve third-quarter sales of about KRW 8.4 trillion and an operating profit of around KRW 690 billion this year. The preliminary results announced by LG Energy Solution on this day slightly exceeded these expectations (based on operating profit). The tax credit benefit from the US Inflation Reduction Act (IRA) in the third-quarter operating profit was KRW 215.5 billion; excluding this, the operating profit was KRW 515.7 billion, with an operating profit margin of about 6.3%.

Sales slightly declined due to weak electric vehicle sales in some parts of Europe. However, the growth trend of electric vehicles in the North American region continued. In particular, the expansion and new establishment of production plants in North America and yield improvements drove this strong performance.

LG Energy Solution achieved cumulative sales of approximately KRW 25.7441 trillion and an operating profit of KRW 1.825 trillion in just three quarters this year, surpassing last year's total sales (KRW 25.5986 trillion) and operating profit (KRW 1.2137 trillion), which were the 'highest annual results.' LG Energy Solution stated earlier this year that it plans to expand annual sales by more than 25-30% through new and expanded global production plants, stable operations, and sales expansion centered on the North American region.

Earlier, LG Energy Solution announced plans to expand annual sales by more than 25-30% through new and expanded global production plants, stable operations, and sales expansion centered on the North American region.

LG Energy Solution plans to promote the development and mass production of customized products for target markets through continuous cost improvement efforts and product competitiveness differentiation. Additionally, based on partnerships with major automakers, it will expand production capacity and accelerate the establishment of smart factories, localize raw material supply chains, and build a resource circulation system by production base. Previously, LG Energy Solution signed a long-term supply contract for electric vehicle batteries with Toyota, the world's number one automaker by sales volume, for an annual scale of 20GWh, further strengthening its dominance in the North American market.