Operating Profit Surpasses 1 Trillion Won for Six Consecutive First Quarters
LG Electronics achieved record-high quarterly results in both its vehicle component solutions and heating, ventilation, and air conditioning (HVAC) businesses, which are considered future growth engines and the core of its business-to-business (B2B) operations.
On April 24, LG Electronics announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally estimated at 1.2591 trillion won, down 5.7% from the same period last year.
Although this figure was 5.4% below the market consensus of 1.3315 trillion won, the company maintained a solid profit structure, surpassing 1 trillion won in first-quarter operating profit for the sixth consecutive year. Revenue reached 22.7398 trillion won, an increase of 7.8% year-on-year, marking the highest first-quarter revenue on record. Net profit rose by 49.6% to 875.6 billion won.
LG Electronics explained that areas of "qualitative growth"?such as B2B business, subscription services, webOS and other non-hardware (Non-HW) offerings, and direct-to-consumer (D2C) sales?significantly contributed to the company's strong overall performance.
The combined operating profit of the VS Business Division, which handles vehicle components, and the ES Business Division, responsible for HVAC, increased by 37.2% compared to the same period last year. Revenue for these divisions also grew by 12.3%. The HS Business Division, which serves as a cash cow for the company, also achieved its highest-ever revenue by accelerating changes in business models and approaches such as subscription services and D2C sales.
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