LG Electronics Posts Strongest First Quarter Sales Ever... Operating Profit Hits 1.3 Trillion Won

Positive Performance Evaluation with Expansion of B2B and Subscription Businesses
New Products like 'All New Styler' Drive Growth
Volume Zone Targeting Strategy Also Yields Results

LG Electronics posted solid results, achieving the highest first-quarter sales ever despite global demand sluggishness, driven by strong B2B and home appliance sales and the expansion of subscription services.

LG Electronics Twin Tower. Photo by Jinhyung Kang aymsdream@

LG Electronics announced on the 5th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 1.3329 trillion KRW, down 11% from the same period last year.

Although operating profit declined due to rising material costs and intensified market competition, the company recorded first-quarter operating profits exceeding 1 trillion KRW for five consecutive years since the first quarter of 2020. Sales reached 21.0959 trillion KRW, up 3.3% compared to the same period last year. This is the highest first-quarter sales figure in the company's history.

The results generally aligned with market forecasts, which predicted sales of 21.3178 trillion KRW, up 4.42% year-on-year, and operating profit of 1.3328 trillion KRW, down 10.99%. LG Electronics explained that the introduction of new business models such as subscriptions and the expansion of the B2B business, which has significant growth potential, served as driving forces to overcome uncertainties such as delayed market demand recovery.

Additionally, the differentiated market strategy of expanding the product and price range of the volume zone (Volume Zone ? the area with the largest consumer demand) lineup in response to market demand polarization also proved effective.

Although detailed performance by business division was not disclosed on the day, it is analyzed that the cash cow, the home appliance business, led growth with premium new products such as the first-quarter launched clothing care device 'All New Styler' and the all-in-one washer-dryer 'Wash Combo,' which received positive market responses. The strategy of targeting the volume zone according to regional characteristics and demand changes in overseas markets is also evaluated to be yielding results. Expansion of B2B sectors such as HVAC (heating, ventilation, and air conditioning systems), built-in appliances, and component solutions continues steadily.