LG Electronics has announced consolidated revenue of KRW 20 trillion (A$23 billion) for the second quarter 2023 – the highest in the company’s history – with operating profit of KRW 741.9 billion (A$855.5 million).
The record revenue reflects LG’s efforts to improve its business structure by pursuing new platform-based service businesses and continuously expanding the business-to-business (B2B) segments. The company plans to drive further profitability improvements by optimising efficiencies and better meeting market demands through enhanced demand forecasting and manufacturing competitiveness. LG also plans to strengthen its online brand store and direct-to-consumer businesses.
The LG Home Appliance & Air Solution Company generated Q2 revenue of KRW 7.99 trillion (A$9.2 billion) and operating profit of KRW 600.1 billion (A$691 million) – an increase of 40% from the previous year, reflecting efficient cost structure management.
Despite intensified market conditions, the business unit recorded strong profitability on the back of increased sales of products such as air conditioners and heat pump dryers. LG will continue to leverage its high-efficiency innovations as demand for green technologies grows in Europe, North America and around the world. The company also sees the electrification trend as an opportunity for future growth in the HVAC business.
In Q3, the company will launch new LG ThinQ UP 2.0 home appliances for greater personalisation, coupled with subscriptions and services. Certain mass-tier appliances will be expanded in response to market changes.
The LG Home Entertainment Company recorded Q2 revenue of KRW 3.15 trillion (A$3.6 billion) and operating profit of KRW 123.6 billion (A$142.5 million). As challenging business conditions persist, LG continues to focus on improving operational efficiency and profitability by growing the content and service businesses based on the LG webOS smart TV platform.
The company intends to transform its TV business portfolio into a “media and entertainment service provider” by expanding content, services and advertising. LG plans to solidify its leadership in the ultra-large-screen TV market with the launch of the 97-inch LG SIGNATURE OLED M, the world’s first ‘wireless’ consumer TV with Zero Connect technology. LG’s new Lifestyle Screens are also driving the premium TV market.
The LG Business Solutions Company saw improved Q2 revenue of KRW 1.33 trillion (A$1.5 billion) with operating profit of KRW 2.6 billion (A$3 million). Both revenue and operating profit declined slightly from the same period last year due to softening demand for IT products. From Q3, demand is expected to show a gradual recovery compared to the first half.
LG plans to actively expand sales of monitors and laptops equipped with gaming features and OLED displays. In the commercial display business, the company will seek opportunities for further growth with customised solutions for various verticals including hospitality, education, retail and corporate.