LG Electronics has recorded consolidated revenue of A$24.1 billion and operating profit of A$1.1 billion for the third quarter of 2023, both the second highest third quarter figures in the company’s history.
The performance was driven by the home appliance business and vehicle solutions. Home appliances more than doubled its operating profit year-over-year, while vehicle solutions recorded an all-time high operating profit.
The performance reflects the company’s progress in its future vision for 2030. The fundamentals, announced in July 2022, is to focus on B2B expansion, non-hardware business model innovation, as well as the development and acquisition of new growth engines with the aim to go beyond a home appliance company to become a Smart Life Solutions company.
Revenue growth was bolstered by expansion in B2B, including automotive parts and HVAC systems – accounting for approximately 35% of overall revenue this year. The goal is to boost B2B revenue to over A$46.6 billion by 2030.
Third quarter operating profit increased by more than 30% both year-over-year and quarter-over-quarter, largely driven by the company’s business model innovation – combining non-hardware solutions such as content and subscription services with traditional hardware products such as home appliances and TVs.
The LG Home Appliance & Air Solution Company generated third quarter revenue of A$8.7 billion and operating profit of A$588.7 million. The operating profit more than doubled year-over-year, attributable to strong competitiveness in overall business operations including manufacturing, procurement, and logistics.
Revenue maintained strong versus last year’s third quarter, aided by strategic repositioning of product line-ups in response to softened demand, as well as expansion of B2B line-ups including HVAC, parts and built-in appliances. In the fourth quarter, the company will lead a shift in home appliances with the LG ThinQ UP 2.0 expanding business into services and subscriptions.
The LG Home Entertainment Company recorded third quarter revenue of A$4.1 billion and an operating profit of A$129.2 million. The company maintained its profitable growth by effectively managing marketing expenses despite increased LCD panel prices, while also diversifying profit sources based on the growth of content and services business built on its smart TV platform.
In addition to expanding collaboration with content providers, the company is upgrading TV operating systems to expand the content experience of customers. The number of TVs powered by webOS is expected to reach 300 million units by 2026.
The LG Business Solutions Company’s third quarter revenue was A$1.5 billion with an operating loss of A$23.9 million. Both revenue and profitability weakened due to the softening of demand for IT products. As challenging conditions persist, the company continues to innovate customer experiences with premium IT line-ups such as commercial displays and foldable laptops.