LG Electronics Surpasses 1 Trillion KRW Operating Profit for 5 Consecutive First Quarters... Record First Quarter Sales (Comprehensive)

Strong Performance in Home Appliances and Automotive Electronics
Operating Profit 1.3354 Trillion KRW · Sales 21.0959 Trillion KRW
Net Profit 585.4 Billion KRW '7.1%↑'
Q2 Also Accelerates B2B Business Expansion

LG Electronics recorded its highest-ever first-quarter sales, driven by strong performance in home appliances and its future growth business, automotive components (vehicle electric and electronic equipment). Although operating profit slightly declined, it maintained the 1 trillion KRW level for the fifth consecutive year.

Seoul Yeouido LG Twin Tower view./Photo by Jinhyung Kang aymsdream@

LG Electronics announced on the 25th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 1.3354 trillion KRW, down 10.8% from the same period last year. Despite intensified competition in the market and increased marketing expenses, the company generated solid profits, surpassing 1 trillion KRW in operating profit for five consecutive years since 2020 for the first quarter. First-quarter sales reached 21.0959 trillion KRW, up 3.3% from the same period last year, marking the largest scale ever recorded for a first quarter. Net profit increased by 7.1% to 585.4 billion KRW.

LG Electronics stated, "Despite ongoing macroeconomic challenges such as high inflation, high exchange rates, high interest rates, and delayed demand recovery, we introduced business models capable of continuous sales and profit generation, such as subscriptions, and sustained growth in business-to-business (B2B) sectors with significant opportunities. We strengthened our premium competitiveness by emphasizing AI, energy efficiency, and customer-centric design, and implemented differentiated market strategies to respond to demand polarization by diversifying our lineup and price ranges."

By business division, the H&A Business Division, responsible for home appliances, recorded its highest-ever sales and double-digit operating profit margin. The H&A Business Division's first-quarter sales increased by 7.2% year-on-year to 8.0675 trillion KRW. Operating profit was 940.3 billion KRW, the second highest ever following the first quarter of last year. The operating profit margin stood at 10.9%.

The VS Business Division, responsible for automotive components, posted first-quarter sales of 2.6619 trillion KRW and operating profit of 52 billion KRW. Sales increased by 11.5% compared to the same period last year.

LG Electronics explained, "The order backlog we have secured so far is gradually translating into sales growth. Despite continuous investments such as establishing overseas production bases to respond to new orders and clients, we achieved economies of scale from expanded sales and recorded stable profitability."

The HE Business Division, responsible for the TV business, recorded sales of 3.492 trillion KRW, up 4.2% year-on-year, supported by the recovery of TV demand in Europe and the launch of 2024 models. Operating profit turned positive compared to the previous quarter, reaching 132.2 billion KRW, driven by growth in the webOS content and service business.

The Business Solutions (BS) Business Division posted first-quarter sales of 1.5755 trillion KRW, a 6.5% increase year-on-year. New LG Gram products featuring on-device AI received positive responses during the graduation and school entrance seasons, and sales of commercial display products such as electronic whiteboards and LED signage expanded. Operating profit turned positive compared to the previous quarter, reaching 12.8 billion KRW.

LG Electronics plans to continue its performance improvement trend in the second quarter by breaking through limits with new business models such as subscriptions and continuously creating additional growth opportunities in B2B and other areas. The home appliance business will lead the paradigm shift in appliances by evolving into 'empathic intelligence appliances' that consider and empathize with customers, and by providing subscription services that offer desired products and management services tailored to customers' lifestyles. The company will also accelerate the expansion of B2B businesses with significant growth potential, such as HVAC and built-in appliances.