LG Electronics also posts 'surprise earnings'... Q1 sales and operating profit both hit 'all-time highs'

Premium Product Sales Increase
Impact of Reduced Non-Recurring Expenses and Temporary Patent Income

[Asia Economy Reporter Jin-ho Kim] Following Samsung Electronics, LG Electronics also received its best-ever performance report for the first quarter of this year. Increased sales of premium products such as OLED TVs, improved affiliate performance, and patent income combined to record the highest-ever sales and operating profit.

LG Electronics announced on the 7th that its preliminary consolidated results for the first quarter of this year showed sales of 21.1091 trillion KRW and operating profit of 1.8801 trillion KRW. This represents an 18.5% increase in sales and a 6.4% increase in operating profit compared to the first quarter of last year.

First-quarter sales surpassed the previous record set in the fourth quarter of last year (21.0086 trillion KRW) by more than 100 billion KRW.

Initially, the market expected LG Electronics' operating profit to fall to 1.3559 trillion KRW, a 10.5% decrease compared to the first quarter of last year, due to rising oil prices, increased global logistics costs, and higher raw material prices.

However, increased sales of home appliances and TVs centered on premium products significantly impacted sales. Additionally, a reduction in non-recurring expenses (HR costs for company-wide personnel restructuring) and temporary patent income contributed to operating profit exceeding expectations.

In the explanatory materials released alongside the preliminary results, LG Electronics stated, "Due to the impact of non-recurring expenses, the final preliminary operating profit by business division is expected to differ significantly from market expectations."

The preliminary results are estimates based on Korean International Financial Reporting Standards (K-IFRS). Consolidated net profit and business division performance will be announced at the earnings briefing scheduled for the end of this month.

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