LG has announced its financial results for the first quarter of 2023, posting a Kes 153 billion profit and Kes 2.08 trillion in total revenue, which is the second-highest first-quarter revenue in the company’s history. These figures are attributed to improved business structure and operational efficiency despite the profitability being impacted by challenging global economic conditions.
The LG Home Appliance & Air Solution business unit recorded the highest revenues of Kes.819.04 billion, with an operating profit of Kes 104.17 billion. This unit recorded its highest first-quarter revenues, with operating profit exceeding Kes 102.12 billion in sales for the first time. Continuous growth was driven largely by the rapid expansion of the B2B segment, fueled by sales of energy-efficient heat pump-enabled products as well as energy storage systems.
The LG Home Entertainment Company recorded first-quarter sales of Kes 343.14 billion with an operating profit of Kes 20.46 billion attributed to effective management of operational costs through enhanced demand forecasting. Despite lower global TV demand caused primarily by challenging economic conditions in Europe, the company saw increased sales of the growth of content and services businesses based on LG’s webOS smart TV platform while strengthening operation competitiveness.
The LG Vehicle Component Solutions Company achieved first-quarter sales of Kes 244.08 billion with an operating profit of Kes 5.51 billion, being its highest first-quarter revenues ever. Continuous efforts to strengthen the global supply chain led to further increased profitability in the first quarter, as the value of accumulated orders for auto parts reached Kes 8.17 trillion.
Lastly, the LG Business Solutions Company saw improved first-quarter revenues of Kes 151.15 billion, with an operating profit of Kes 6.71 billion. The company plans to focus on expanding its information display business by developing customized solutions and discovering potential customer demand. The company also plans to accelerate the development of new business segments, especially in South Korea, as robots and electric vehicle chargers are being fully integrated into LG’s production systems.
According to LG Electronics Inc CEO William Cho, the company will focus on maintaining the competitiveness of its premium appliances as well as strengthening its mass-tier appliance lineup in response to the polarization of market demand. The company also plans to manage its cost structure to enhance profitability. Additionally, the appliance business expects to see continued growth by focusing on the expanding B2B segment and accelerating the service segment including the rental and care service business.