LG Display Achieves Record High Revenue of 29 Trillion Won Last Year... Returns to Profit After 3 Years (Comprehensive)

Operating Profit Exceeds 2 Trillion Won Last Year, Second Highest Ever
Accelerating Mainstreaming in Premium TV Market by Expanding 'OLED.EX' Application

[Asia Economy Reporter Lee Hye-young] LG Display announced on the 26th that its annual sales last year reached 29.878 trillion KRW, with an operating profit of 2.2306 trillion KRW.

Annual sales increased by 23% compared to the previous year (24.2616 trillion KRW), achieving an all-time high. Operating profit exceeded 2 trillion KRW, marking the second highest ever and successfully returning to profitability after three years.

This was driven by the popularization of large-sized premium organic light-emitting diode (OLED) displays, strengthening the foundation of the small and medium-sized OLED business, and LCD structural innovation focused on high-end IT products.

Fourth-quarter sales last year were 8.8065 trillion KRW, with an operating profit of 476.4 billion KRW. Sales increased by 22% and 18% compared to the previous quarter (7.2232 trillion KRW) and the same quarter last year (7.4926 trillion KRW), respectively, recording the highest quarterly sales ever, thanks to the expansion of OLED share due to business structure advancement and increased shipments of IT panels.

Operating profit decreased compared to the previous quarter (529.3 billion KRW) due to a decline in panel prices for LCD TVs and one-time year-end expenses. Net profit was 179.5 billion KRW, and EBITDA (earnings before interest, taxes, depreciation, and amortization) was 1.645 trillion KRW (profit margin 19%).

By product sales ratio based on sales, TV panels accounted for 27%, IT panels (monitors, notebook PCs, tablets, etc.) 42%, and mobile and other panels 31%.

LG Display plans to secure operational stability by continuously reducing volatility even as demand enters an adjustment phase after the COVID-19 special demand this year.

To this end, the company aims to increase the proportion of businesses that can stably generate results through strategic collaboration with customers beyond supply-demand type businesses that are heavily affected by market conditions, and expand its business areas to games and transparent displays based on OLED to deliver new customer experiences and value.

Despite the overall TV market shrinking by 13% last year, large OLED solidified its position by leading the premium market. OLED TV panel shipments grew sharply by more than 70% compared to the previous year, marking the start of significant achievements, turning profitable in the second half, and reaching the break-even point (BEP) for the year. This year, the company plans to gradually expand profitability based on more than 20% shipment growth compared to the previous year and strengthened business capabilities.

LG Display plans to apply ‘OLED.EX’ to all series of OLED TV panels starting from the second quarter, accelerating the popularization of OLED in the premium TV market. ‘OLED.EX’ is a next-generation TV panel that applies ‘deuterium technology’ and ‘personalization algorithms’ to the organic light-emitting elements, which are the core of OLED picture quality, increasing screen brightness (luminance) by 30%, reproducing natural colors more precisely, and reducing the bezel by 30%.

For small and medium-sized OLEDs, which have entered a stable growth trajectory, profitability will be further improved in the mobile sector through new models and expansion of high-end products in the second half. Additionally, based on differentiated competitiveness, the company plans to lead the medium-sized OLED premium market and expand into the entire mobility industry, including automobiles.

The LCD division will continue to pursue a selection and concentration strategy focused on high-end IT products.

Meanwhile, LG Display announced on the same day that it has established a dividend policy for the 2021?2023 business years to return 20% of consolidated net profit to shareholders to enhance shareholder value. Accordingly, it decided to pay a cash dividend of 650 KRW per share, totaling 232.6 billion KRW, which will be finalized after approval at the regular shareholders' meeting in March.

Kim Sung-hyun, LG Display’s Chief Financial Officer (CFO), said, “Although volatility in demand and supply chains by product may continue due to the prolonged COVID-19 situation, we will enhance our responsiveness to market changes and secure operational stability. The OLED division is beginning to generate results in earnest, and the LCD division plans to strengthen a stable profit structure centered on high-end IT products.”

This content was produced with the assistance of AI translation services.