LG Announces Q1 2024 Financial Results

Company Pushes Boundaries With Innovative Business Models While Balancing Core Operations and Future Growth to Create New Opportunities

LG Electronics Inc. (LG) announced first-quarter 2024 consolidated revenue of USD 16.4 billion and operating profit of USD 1.001 billion. The company’s home appliance sector demonstrated global leadership, achieving record-breaking revenue and double-digit operating profit margins. The EV components sector, a key driver of future growth, continued its steady expansion. Both the TV and business solutions sectors experienced year-on-year sales growth and returned profits compared to the previous quarter.

 
Despite navigating challenging macroeconomic conditions such as high commodity prices, volatile exchange rates, rising interest rates and delayed demand recovery, LG achieved its highest-ever total revenue for a first quarter. This milestone underscores the effectiveness of implementing sustainable business models like subscription services and leveraging growth opportunities in the promising B2B sector. LG’s emphasis on differentiating features such as AI, energy efficiency and customer-centric design has strengthened its competitiveness in the premium market. Furthermore, the strategic approach of offering diverse product lineups and flexible pricing structures enabled the company to successfully navigate polarized demand trends.

 
Operating profit surpassed USD 752 million for the fifth consecutive year, showcasing LG’s strong performance in the face of intensifying market competition. The company’s focus on content/service businesses and direct-to-consumer sales via the Online Brand Shop (OBS) has fueled qualitative growth. Efforts to stabilize raw material and logistics costs, coupled with production location flexibility, have further bolstered profitability.

 
The LG Home Appliance & Air Solution Company generated first-quarter revenue of USD 8.4 billion and an operating profit of USD 707 million. This represents a notable 7.2 percent increase in revenue compared to the same period last year, setting a new record for first-quarter performance. Operating profits reached the second-highest level in the company’s history, with an operating profit margin of 10.9 percent, underscoring the company’s exceptional global competitiveness.

 
Driven by its core technologies, particularly in motors and compressors, LG’s home appliance business continues to innovate within a mature market landscape. With a commitment to industry leadership, LG is pioneering transformative initiatives such as product subscription services and advancing the concept of ‘Affectionate Intelligence’ appliances. These innovations are tailored to empathize with and address customer needs effectively. Moreover, LG is strategically expanding its B2B ventures, including HVAC and built-in solutions, to capitalize on emerging growth opportunities.

 
The LG Vehicle component Solutions Company reported first-quarter revenue of USD 2.002 billion and an operating profit of USD 39 million, reflecting an 11.5 percent year-on-year revenue increase. The ongoing conversion of backlog orders into revenue is progressing steadily. Despite ongoing investments in overseas production sites to fulfill new orders and meet OEM demands, the company has maintained stable profitability, benefiting from economies of scale resulting from revenue expansion.

 
While there are expectations of a slight slowdown in the recent growth of EV demand, the demand for high-value-added EV components continues to rise steadily. LG is proactively addressing these market dynamics by developing a balanced portfolio, spanning from in-vehicle infotainment to powertrains and headlamps. The company aims to ensure sustained revenue growth and a stable profit base by actively adapting to these market shifts.

 
The LG Home Entertainment Company reported first-quarter revenue of USD 2.6 billion and an operating profit of USD 99.5 million. This represents a 4.2 percent increase in revenue compared to the same period last year, driven by a resurgence in TV demand in Europe and the successful launch of new 2024 models. The positive operating profit was fueled by the robust performance of the webOS content/service business, alongside traditional product sales. Despite challenges such as rising LCD panel prices, the company effectively managed profitability.

 
Looking ahead, a gradual recovery in the TV market demand is anticipated in the second half of the year. LG’s strategy focuses on leveraging its globally leading OLED TV and premium LCD QNED TV offerings while continuously enhancing the profitability of the webOS platform business, which is poised for rapid growth.

 
The LG Business Solutions Company reported first-quarter revenue of USD 1.1 billion, marking a 6.5 percent increase year-over-year, and an operating profit of USD 19.6 million. The launch of new LG gram laptops, featuring on-device AI and timed for graduation and enrollment seasons, garnered positive market feedback. In addition, sales of commercial display products, including electronic whiteboards and LED signage, experienced growth. While operating profit returned to positive territory from the previous quarter, there was a slight decrease compared to the same period last year, attributed to factors such as rising component prices and intensified competition.

 
This year, the overall IT market is expected to maintain similar demand levels to the previous year, with a slight growth anticipated in the commercial display segment. There is an expected increase in demand for high-spec IT products like gaming monitors and LED signage. LG aims to lead the market with strategic IT products tailored to customer needs, integrating gaming-specific features and OLED displays, alongside premium LED products. Efforts to proactively develop promising new businesses such as robotics and EV charging continue to drive future growth prospects.

 
Earnings Conference and Conference Call

LG Electronics will hold a Korean / English conference call on April 25, 2024, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants should pre-register online to receive a private PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.

Hi, Hope: A Unique Gallery that Revitalizes the Lost Feeling of HOPE through the Five Human Senses

MentalHealthPH, a non-stock and not-for-profit mental health organization dedicated to fostering a culture of mental well-being in the Philippines, announces its latest initiative: "Hi, Hope!" This groundbreaking event seeks to cultivate hope as a potent antidote to despair, offering a lifeline to those grappling with mental health challenges.

In partnership with Caring Cup by The Coffee Bean & Tea Leaf, Ad Hoc Marketing, and Pool Party Creatives, MentalHealthPH invites you to join "Hi, Hope!" an on-ground, immersive event designed to reignite the flame of hope through a sensorial journey. The event will take place at Kitchen by The Coffee Bean & Tea Leaf, Net Lima (Six/NEO), at the Bonifacio Global City on April 27, Saturday. The program will commence from 10 am to 12 pm, followed by an open gallery until 7 pm.

At "Hi, Hope!" guests will embark on a sensory exploration, engaging with five unique stations tailored to each human sense:

Sense of Sight—Gallery of Hope: Delve into a visually captivating gallery featuring symbols of hope from suicide survivors. Each exhibit is accompanied by a poignant backstory, offering insight into how these symbols became beacons of hope. QR codes allow guests to connect directly with the creators for a deeper understanding.

Sense of Hearing - Stories of Hope: Experience the power of linguistic artistry as survivors share their stories of hope through poetry and narrative performance

Sense of Touch - Free Hugs: Find solace and reassurance in the warmth of a hug at our designated free hug station, offering comfort to those in need during the event.

Sense of Taste - Affirmation Cookies: Indulge in words of encouragement and hope with affirmation cookies featuring messages from survivors and uplifting quotes, replacing fortune-telling with affirmations for the soul.

Sense of Smell - Aromatherapy Area: Immerse yourself in a soothing oasis of scents at our aromatherapy area, where guests can relax and reflect amidst the calming aroma of scented candles and incense.

In the battle against suicide, hope emerges as a powerful ally capable of guiding individuals toward a future filled with possibility and purpose. We can create a world where everyone feels seen, heard, and valued by fostering hope, nurturing resilience, and extending support.

Additionally, "Hi, Hope!" will be hosted by mental health advocates and attended by various mental health personalities.

Join us at "Hi, Hope!" as we embark on a transformative journey to revitalize the spirit of hope and resilience. Let us pave the way towards a brighter, more hopeful future.

LG OLED evo TVs Receive Eco-Friendly Certification for Fourth Consecutive Year

LG 2024 OLED evo TVs Demonstrate Company’s Dedication to Sustainability and Highlight Premium Value of LG OLED TVs

LG Electronics (LG) continues to receive recognition for its steadfast commitment to sustainability and eco-conscious practices. LG 2024 OLED evo TVs achieved Reducing CO21 and Measured CO22 certifications from the Carbon Trust3 and Environmentally Evaluated Mark4 from Société Générale de Surveillance SA (SGS), marking the fourth consecutive year of consistent acknowledgement for LG's ESG initiatives. LG’s newest OLED TVs have also earned their second successive Recycled Content certification, further demonstrating LG’s sense of environmental responsibility.

The Carbon Trust works to usher the globe into a future of zero carbon emission by assessing the environmental impact of a product's entire life cycle, from production and distribution to use and disposal. SGS certification focuses on resource efficiency and the presence of hazardous substances, while Intertek measures the percentage of recycled materials used. The organizations’ respective approaches promote responsible consumption practices across diverse industries and contribute to the broader goal of sustainability worldwide.

Notably, the self-lit nature of LG OLED TVs garners significant attention in stringent sustainability evaluations. Unlike LCD TVs, LG OLED TVs do not require a backlight, meaning a simpler structure and fewer necessary components. For instance, LG’s 65-inch OLED evo, made of ultra-light composite fiber, requires only 40 percent of the plastic typically used in an LCD TV of the same size screen and weighs 20 percent less.

Based on the estimated sales of LG OLED TVs this year, the total amount of plastic used in LG OLED TVs from 2022 to 2024 is expected to be 45,000 tons lower than that of LCD TVs sold during the same period. The reduction in plastic usage will lead to a decrease in carbon emissions of approximately 234,000 tons a year, equivalent to the carbon dioxide absorbed by a 30-year-old pine forest. This number translates to one-third of the area of Seoul or about 31,000 soccer fields.

Recycled plastics account for about 20% of the plastic used in the manufacturing of all LG TVs, including OLED TVs, equal to around 4,000 tons of recycled waste plastic annually.

Beyond environmental activities, LG’s various ESG initiatives have received praise from reputable domestic and international organizations. In 2023, LG was named in the Dow Jones Sustainability World Index (DJSI World) for the twelfth year in a row. The DJSI World ranks in the top ten percent of the largest 2,500 global companies based on their long-term economic, environmental, social and governance practices. The company’s inclusion on this prestigious list for twelve consecutive years is a significant milestone, as LG is the sole South Korean company in the Leisure Equipment & Products and Consumer Electronics industry category to achieve this feat.

Furthermore, LG has received the ‘Comprehensive A grade’ from the ESG Evaluation and Rating Announcement of Korea ESG Standards Institute (KCGS) for three years running, and last year, the company earned its fourth back-to-back ‘A’ rating from the Morgan Stanley Capital International (MSCI) ESG Rating.

“LG OLED TVs lead the market as the ultimate choice for premium viewing experiences, while also going beyond to set the bar for ESG standards,” said Baik Seon-pill, leader of the LG Home Entertainment Company’s Product Planning Division. “LG will remain devoted to continuing efforts toward creating a better planet for all.”