LG Electronics Achieves Record-High Q1 Revenue, Driven by Vehicle Components and HVAC Performance
Operating Profit Surpasses 1 Trillion Won for Six Consecutive First Quarters
LG Electronics achieved record-high quarterly results in both its vehicle component solutions and heating, ventilation, and air conditioning (HVAC) businesses, which are considered future growth engines and the core of its business-to-business (B2B) operations.
On April 24, LG Electronics announced in a regulatory filing that its consolidated operating profit for the first quarter of this year was provisionally estimated at 1.2591 trillion won, down 5.7% from the same period last year.
Although this figure was 5.4% below the market consensus of 1.3315 trillion won, the company maintained a solid profit structure, surpassing 1 trillion won in first-quarter operating profit for the sixth consecutive year. Revenue reached 22.7398 trillion won, an increase of 7.8% year-on-year, marking the highest first-quarter revenue on record. Net profit rose by 49.6% to 875.6 billion won.
LG Electronics explained that areas of "qualitative growth"?such as B2B business, subscription services, webOS and other non-hardware (Non-HW) offerings, and direct-to-consumer (D2C) sales?significantly contributed to the company's strong overall performance.
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The combined operating profit of the VS Business Division, which handles vehicle components, and the ES Business Division, responsible for HVAC, increased by 37.2% compared to the same period last year. Revenue for these divisions also grew by 12.3%. The HS Business Division, which serves as a cash cow for the company, also achieved its highest-ever revenue by accelerating changes in business models and approaches such as subscription services and D2C sales.
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