LG Electronics Posts Record-High Q1 Revenue... "TV Business Returns to Profit" (Comprehensive)

LG Twin Towers, Yeouido, Seoul.

LG Electronics achieved record-high first-quarter revenue this year, posting operating profit of 1.7 trillion won.

On April 29, LG Electronics announced in a regulatory filing that, on a consolidated basis, its first-quarter operating profit reached 1.6737 trillion won, a 32.9% increase compared to the same period last year. Revenue was 23.7272 trillion won, up 4.3% year-on-year. Net profit increased by 14.8% to 1.0051 trillion won.

This marks the highest first-quarter revenue in the company's history, and the third-highest operating profit for a first quarter.

First-quarter B2B (business-to-business) sales reached 6.5 trillion won, up 1% from the same period last year. B2B accounted for 36% of total revenue.

The MS Business Division, which had posted an annual operating loss of 750.9 billion won last year due to sluggish TV business and one-off expenses, rebounded. In the first quarter of this year, the MS Business Division recorded revenue of 5.1694 trillion won and operating profit of 371.8 billion won. Operating profit increased sharply compared to the same period last year, and the division returned to profitability compared to the previous quarter.

During the earnings conference call, LG Electronics stated, "This year, we are pursuing enhanced customer value and revenue growth based on differentiated products and brand recognition." The company added, "We plan to actively leverage the ecosystems of low-cost countries to build a cost structure that can compete with Chinese manufacturers."

The company further stated, "Securing profitability is our top priority, and we aim to focus on improving our cost structure. Through these activities, we expect to achieve both revenue growth and a turnaround in profit and loss compared to last year."

LG Electronics also revealed its plan to raise prices for certain products in response to recent increases in memory semiconductor prices.

The company explained, "Semiconductor supply constraints are likely to persist for an extended period, but we are working to stabilize the supply chain through close cooperation with memory manufacturers. For PC product lines with a high proportion of memory components, if memory prices continue to surge, further price increases will be inevitable."

LG Electronics plans to actively respond to risks such as rising oil prices and logistics costs resulting from the Middle East conflict. The company noted, "The proportion of Middle East routes in our overall maritime logistics is around 5%, so it is not significant. However, due to war risk surcharges and increased fuel costs, we expect total maritime logistics expenses to increase by 10% compared to our previous forecast."

Regarding the "timing of tariff refunds and the impact of future changes in the trade environment," LG Electronics stated, "We are following the guidance of the U.S. government regarding related procedures, but it is difficult to provide definitive answers on the refund amount or timing at this stage. We believe it will take some time."

LG Electronics commented, "We expect tariff burdens to increase compared to before, but even if the policy is implemented, the impact on overall performance will be limited." The company added, "To minimize additional tariff impacts, we are considering measures such as adjusting the product mix and improving supply chain efficiency."

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