LG Electronics Records Highest Quarterly Sales in 1Q... "Premium Home Appliance Effect Worked" (Update)

Achieved Consolidated Sales of 21.1114 Trillion KRW and Operating Profit of 1.8805 Trillion KRW

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[Asia Economy Reporter Park Sun-mi] LG Electronics announced its highest-ever quarterly earnings on the 28th, driven by strong sales of premium home appliances.

On the 28th, LG Electronics reported consolidated sales of KRW 21.1114 trillion and operating profit of KRW 1.8805 trillion for the first quarter of this year. Sales increased by 18.5% compared to the same period last year, marking the largest quarterly scale. Operating profit also rose by 6.4% year-on-year, reaching a quarterly record, positively influenced by a temporary increase in patent income.

By business division, the H&A division (home appliances) recorded first-quarter sales of KRW 7.9702 trillion and operating profit of KRW 447.6 billion. Sales reached a quarterly record high, increasing 18.8% year-on-year due to increased sales of premium products such as the LG Objet Collection, new appliances, and steam appliances. Sales grew evenly across all global regions, with particularly sharp growth in advanced markets centered on North America and Europe.

The HE division (TV, audio, etc.) posted sales of KRW 4.0649 trillion and operating profit of KRW 188.4 billion. Despite stagnation in the global TV market, sales slightly increased year-on-year due to the steady popularity of premium products such as OLED TVs and large-sized TVs. The HE division has continuously achieved quarterly sales exceeding KRW 4 trillion since the fourth quarter of 2020.

The VS division (vehicle components) recorded first-quarter sales of KRW 1.8776 trillion and an operating loss of KRW 6.3 billion. Sales increased by 8.5% year-on-year as the division proactively responded to vehicle semiconductor supply issues and sales of infotainment, electric vehicle powertrains, and vehicle lighting systems all increased. Despite intensified competition among companies, the VS division is improving profitability through sales growth and cost reduction.

The BS division (business solutions) surpassed KRW 2 trillion in quarterly sales for the first time. Sales rose 23.7% to KRW 2.0167 trillion, and operating profit reached KRW 37 billion. The increase was influenced by growing new and replacement demand for IT products during the academy season and a gradual recovery in the B2B market. Although the BS division faced price increases in key components and logistics costs, it achieved stable profitability due to strong sales of IT products and information displays.

However, while LG Electronics’ temporary increase in patent income positively impacted overall operating profit, operating profits by business division each declined year-on-year due to temporary cost expenditures. The cost of personnel restructuring carried out company-wide in the first quarter to enhance organizational dynamism was reflected in each business division’s results.

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