LG Electronics has announced first-quarter 2023 revenue of KRW 20.4 trillion (A$23 billion) – the second highest first-quarter revenue – with operating profit of KRW 1.5 trillion (A$1.7 billion), the third highest first-quarter profitability in the company’s history.

The record sales reflect improvements in its business structure, expanding B2B segment and non-hardware business areas, such as content and services, which are achieving significant growth, and operational efficiency. Profitability was impacted by challenging global economic conditions.  

The LG Home Appliance & Air Solution Company generated revenue of KRW 8.02 trillion (A$9 billion) – its highest ever first-quarter revenue – with operating profit reaching KRW 1.02 trillion (A$1.1 billion), exceeding KRW 1 trillion sales for the first time.

Growth was largely driven by the expansion of the B2B segment, fuelled by sales of energy efficient heat pump-enabled products and energy storage systems. The company will focus on maintaining competitiveness of its premium appliances, as well as strengthening its mass-tier appliance line-up in response to polarisation of market demand, along with managing cost structure to enhance profitability.

The appliance business expects to see continued growth by focusing on the B2B segment and accelerating the service segment including the rental and care service business.

The LG Home Entertainment Companyrecorded first-quarter sales of KRW 3.36 trillion (A$3.37 billion) with an operating profit of KRW 200.3 billion (A$220 million) due to enhanced management of operational costs through better demand forecasting.

Despite lower global TV demand caused primarily by challenging economic conditions in Europe, the company saw increased sales growth of content and services businesses based on the LG webOS smart TV platform.

Premium 2023 product launches, led by LG OLED evo TV models, are expected to maintain a competitive edge. At the same time, the global launch of Lifestyle Screens, delivering differentiated designs and features, is expected to boost sales and drive the premium TV market.

The LG Business Solutions Company saw improved first-quarter revenue of KRW 1.48 trillion (A$1.7 billion) with an operating profit of KRW 65.7 billion (A$73 million). Stable growth is driven by proactively responding to academic season demand with competitive products including the new SuperSlim LG gram laptop computers, while product competitiveness and operational efficiencies also improved.

The company plans to focus on expanding its information display business by developing customised solutions and discovering potential customer demand.