LG Electronics Achieves 'Record High' Sales... Dual Drive from Home Appliances and Automotive Divisions (Comprehensive)

'High Start, Low Finish': Fourth Quarter Sales Fell Short of Expectations
Home Appliance 'Cash Cow' Achieves Double-Digit Sales Growth
Focusing on 'Qualitative Growth' Through Portfolio Innovation

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

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

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

The second half of the year showed relatively weak performance, following a "high start, low finish" trend. Fourth-quarter operating profit was KRW 135.4 billion, down 56.7% from the same period last year. Fourth-quarter sales and net loss were recorded at KRW 22.7615 trillion and KRW 713.7 billion, respectively. LG Electronics explained, "On an annual basis, qualitative growth continued through business portfolio restructuring, and a stable profit structure was maintained due to operating leverage effects from increased sales scale."

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

The HE Business Division, in charge of the TV business, posted sales of KRW 15.2291 trillion and operating profit of KRW 315.9 billion. Notably, the advertising and content business based on the smart TV operating system webOS surpassed annual sales of KRW 1 trillion. OLED TV sales increased in Europe and Asia, influenced by global sports events.

The VS Business Division, responsible for automotive components, recorded sales of KRW 10.6205 trillion last year, exceeding KRW 10 trillion for the second consecutive year, supported by a high order backlog despite the electric vehicle chasm (temporary demand stagnation). Operating profit was KRW 115.7 billion, showing a decrease compared to the previous year due to factors such as research and development (R&D) investments.

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

Jo Joo-wan, CEO of LG Electronics, is delivering the keynote speech at the LG Electronics press conference "LG World Premiere" held on the 6th (local time) at the Mandalay Bay Convention Center in Las Vegas, Nevada, USA. Photo by LG Electronics

LG Electronics plans to consistently pursue qualitative growth through business portfolio innovation.

The HS Business Division plans to launch region-specific and AI-applied new products and expand the volume zone (the area with the largest consumer demand). Additionally, aligned with the goal of "enhancing life value through liberation from household chores," it will accelerate its AI home solution business. The subscription business will be expanded to countries such as Thailand and India.

The MS Business Division plans to expand sales of premium products such as OLED and QNED and provide differentiated customer experiences through AI features. webOS will be developed into an integrated indoor and outdoor content and service platform.

The VS Business Division will focus on securing software-defined vehicle (SDV) capabilities as part of future preparation. It plans to strengthen profitability through product mix improvements and concentrate on solidifying its foundation.

The newly established ES Business Division aims to rapidly grow the heating, ventilation, and air conditioning (HVAC) business into a global top-tier player based on core technology competitiveness. To this end, it will work on establishing a local integrated production system and provide comprehensive solutions optimized for various spaces, including large-scale chillers.

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