LG Electronics Inc. (LG) showed robust performance despite facing a slew of macroeconomic challenges, as reported in its first-quarter 2024 financial results. The company reported consolidated revenue of KRW 21.09 trillion and operating profit of KRW 1.33 trillion.
LG’s home appliance sector achieved record-breaking revenue and double-digit operating profit margins. The company’s emphasis on differentiating features like (artificial intelligence) AI integration, energy efficiency, and customer-centric design has boosted its competitiveness in the premium market segment.
Despite navigating hurdles such as high commodity prices, volatile exchange rates, and rising interest rates, LG achieved its highest-ever total revenue for the first quarter. The company’s initiatives, including subscription services and a focus on the promising B2B sector, have contributed to this milestone.
Operating profit surpassed KRW 1 trillion for the fifth consecutive year, underscoring LG’s resilience amid intensifying market competition. Efforts to stabilize raw material and logistics costs, coupled with production location flexibility, further bolstered profitability.
LG’s Home Appliance & Air Solution Company saw significant growth, with a 7.2% increase in revenue compared to the same period last year, setting a new first-quarter record. Driven by core technologies, the company continues to innovate within the mature home appliance market.
Home entertainment
In the EV components sector, LG reported steady expansion despite expectations of a slight slowdown in EV demand growth. The company remains proactive in developing a balanced portfolio to ensure sustained revenue growth.
In the Home Entertainment Company, LG saw a resurgence in TV demand in Europe and a positive operating profit driven by the robust performance of the webOS content/service business.
The Business Solutions Company also reported growth, particularly with the launch of new LG gram laptops and sales of commercial display products.
LG anticipates a gradual recovery in the TV market demand and aims to lead with its globally leading OLED TV and premium LCD QNED TV offerings. The company is focused on developing promising new businesses such as robotics and EV charging to drive future growth prospects.