LG Electronics Last Year Sales 84.2 Trillion Won... 3 Consecutive Years of 'Record High Performance' (Comprehensive)

Last Year's Operating Profit Was 3.5485 Trillion KRW... Down 0.1% from the Previous Year
Record High Due to Maintaining Core Strength and B2B Business Growth

LG Electronics achieved record-high sales for the third consecutive year last year despite delayed demand recovery and intensified market competition.

The LG Twin Towers in Yeouido, Seoul, where LG Electronics headquarters is located. / Asia Economy DB

LG Electronics announced on the 8th that its consolidated operating profit for the past year was tentatively estimated at 3.5485 trillion KRW, a 0.1% decrease from the previous year. However, sales increased by 1% year-on-year to 84.2804 trillion KRW. Following last year, it recorded the highest sales ever, achieving the best performance for three consecutive years.

Annual sales reached a new all-time high as the core business maintained solid fundamentals, combined with growth in the B2B (business-to-business) sector. Over the past three years, LG Electronics’ compound annual growth rate (CAGR) in sales exceeded 13%.

Regarding these results, LG Electronics self-assessed that "efforts to enhance the business portfolio, such as early identification of market inflection points in response to declining demand and achieving high growth in the B2B business, drove the performance." It added, "Business model innovation diversifying from a product-centered structure to include content and services also contributed to securing steady profitability."

LG Electronics’ operating profit in the fourth quarter of last year was 312.5 billion KRW, a 350.9% increase compared to the same period last year, which had experienced an 'earnings shock.' However, due to delayed recovery in demand for home appliances and TVs and increased marketing expenses, operating profit decreased by 68.6% compared to the previous quarter. Sales were 23.1567 trillion KRW, up 5.9% year-on-year and 11.8% quarter-on-quarter.

The preliminary results released on this day are estimates based on Korean International Financial Reporting Standards (K-IFRS). LG Electronics will announce the finalized results, including consolidated net profit for 2023 and business division performance, at the earnings briefing scheduled for the end of this month.

LG Electronics is determined to continue the positive momentum this year by breaking its highest sales record. The automotive components business is expected to join the ranks of core businesses by surpassing annual sales of 10 trillion KRW in its 10th year since launch. The TV business plans to expand the webOS ecosystem not only through TVs but also smart monitors and in-vehicle infotainment systems this year, further increasing the business base. The Business Solutions division is focusing all efforts on early establishment of key businesses such as signage, electric vehicle charging, and robotics.

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