LG Electronics has reported consolidated revenue of KRW 22.18 trillion (AU$24.23 billion) and an operating profit of KRW 751.9 billion (AU$821.54 million) for the third quarter of 2024. This revenue marks the highest ever for a third quarter, while the operating profit ranks as the fourth highest in the company’s history.
Several external factors impacted the third quarter, including a prolonged delay in market demand recovery and ongoing geopolitical conflicts worldwide. These challenges led to a rise in global shipping expenses, contributing to increased costs.
Despite this, LG has achieved year-over-year revenue growth for four consecutive quarters by upgrading its business portfolio. This includes transforming business methods and models, while expanding B2B operations. These efforts have partially offset cost increases, enabling the company to maintain a robust operating profit.
Looking ahead, LG plans to further accelerate its business transformation by expanding home appliance subscriptions, direct-to-consumer (D2C) sales and volume zone product sales. In addition, drive steady growth in the B2B sector while expanding platform-based content and service businesses.
The LG Home Appliance & Air Solution Company generated third quarter revenue of KRW 8.34 trillion (AU$9.12 billion) and an operating profit of KRW 527.2 billion (AU$576.38 million). Compared to the same period last year, revenue increased by 11.7% and operating profit by 5.5%. Even with the delayed recovery in global appliance demand, the growth of the subscription business model and B2B HVAC business drove revenue expansion. Although a surge in logistics costs impacted operating profit, LG achieved results exceeding the same period last year, thanks to revenue growth and manufacturing competitiveness.
In the fourth quarter, LG plans to diversify its home appliance line-up and pricing strategy to meet growing demand in emerging markets, while expanding new businesses such as subscriptions and D2C sales.
The LG Home Entertainment Company posted third quarter revenue of KRW 3.75 trillion (AU$4.09 billion) and an operating profit of KRW 49.4 billion (AU$53.99 million). Revenue increased by 5.2% compared to the same period last year, driven by increased shipments in Europe – a key market for OLED TVs. Despite a rise in LCD panel prices, the continued growth of the webOS-based content and services business minimised impact on overall profits.
In the fourth quarter, the TV market is expected to see slight growth, primarily in entry level products, compared to the same period last year. LG plans to respond to changes in TV market demand while expanding its webOS partnerships to increase its user base.
The LG Business Solutions Company reported third quarter revenue of KRW 1.40 trillion (AU$1.53 billion) and an operating loss of KRW 76.9 billion (AU$84.03 million). Revenue grew year-over-year due to increased sales of gaming monitors and LED signage, as well as large-scale B2B orders for PC products. However, the operating loss increased due to rising LCD panel prices, increased logistics costs, intensified competition and higher investments in nurturing new businesses.
In the fourth quarter, demand for gaming monitors and LED signage is expected to grow by double digits compared to the same period last year. In addition, the rising interest in AI PCs is anticipated to boost demand for premium laptops.