LG Electronics Achieves 'Record High' Sales... Operating Profit Slightly Declines

'Cash Cow' Home Appliances Division Achieves Double-Digit Sales Growth

LG Electronics recorded its highest-ever sales last year. This was the result of continuous growth in its core home appliances business and the automotive components (electric and electronic equipment) business, which plays a key role in its business-to-business (B2B) growth, marking nine consecutive years of growth. However, operating profit slightly decreased compared to the previous year due to factors such as rising logistics costs.

LG Electronics announced on the 23rd that its consolidated sales last year amounted to 87.7282 trillion KRW, a 6.6% increase compared to the previous year, according to preliminary estimates. This surpassed the 82.5215 trillion KRW recorded in 2022, marking the highest figure in two years. Operating profit last year was 3.4197 trillion KRW, down 6.4% from the previous year. This decline is attributed to delayed recovery in global home appliance demand and increased logistics costs in the second half of the year. Net profit was 591.4 billion KRW, a decrease of 48.6%.

On the 7th (local time), visitors crowded the LG Electronics exhibition hall at CES 2025 held in Las Vegas, USA. Photo by LG Electronics

Operating profit in the fourth quarter was 135.4 billion KRW, down 56.7% from the same period last year. Fourth-quarter sales and net loss were recorded at 22.7615 trillion KRW and 713.7 billion KRW, respectively.

By business division, the H&A Business Division, responsible for home appliances, recorded sales of 33.2033 trillion KRW last year. Despite increased logistics costs, operating profit exceeded 2 trillion KRW again for the first time in three years since 2021, reaching 2.0446 trillion KRW.

The HE Business Division, in charge of the TV business, posted sales of 15.2291 trillion KRW and operating profit of 315.9 billion KRW. Notably, the advertising and content business based on the smart TV operating system web OS surpassed annual sales of 1 trillion KRW.

The VS Business Division, responsible for automotive components, recorded sales of 10.6205 trillion KRW last year, exceeding 10 trillion KRW for the second consecutive year, supported by a strong order backlog despite the electric vehicle chasm (temporary demand stagnation).

The BS Business Division recorded sales of 5.6871 trillion KRW and an operating loss of 193.1 billion KRW last year.

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