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LG Electronics Inc. (LG) has announced financial results for 2023, which show that consolidated sales amounted to 84.2 trillion won (according to the European Central Bank’s quarterly average exchange rate, 58.2 billion euros), while operating profit was 3.55 trillion won won (2.45 billion euros). Thus, the company registered a record annual sales volume for the third year in a row. Operating profit is also stable, approaching the level seen in the previous period of high demand.
Despite challenging external factors such as the economic downturn and falling demand, LG the core home appliance manufacturing business and the fast-growing automotive components business have shown remarkable resilience, posting eight consecutive years of continuous growth. The combined sales of these companies exceeded 40 trillion won (27.6 billion euros) last year, a significant increase from 18 trillion won (12.4 billion euros) in 2015. During this same time period, the share of these two companies in the total trade volume has increased from 32.5% to 47.8%.
These results are related to LG strategic efforts to improve its business portfolio. The company successfully expanded its B2B business by timely identifying market milestones and integrating new business models into existing structures, including subscription services. In addition LG the innovative business model of content and services, leveraging its vast user base with hundreds of millions of products worldwide, has also contributed to stable profitability.
Looking to the future, LG is committed to continuing the transition from a business-oriented structure to a structure aimed at future growth. This year, the company will focus its energies on overcoming limitations to maximize its business potential. The newly created company Overseas Sales & Marketing Company under the leadership LG will seek to achieve additional growth and expand the product range, especially in emerging markets where there are greater opportunities for growth.
LG Home Appliance & Air Solution Company the trade volume reached 30.14 trillion won (20.8 billion euros) last year. The company is showing growth for the eighth year in a row, with sales reaching 30 trillion won (20.7 billion euros). This growth was driven by the introduction of new business models, including subscription services, and the expansion of the B2B segment in areas such as HVAC, components and embedded solutions. Operating profit rose more than 76% year-on-year to 2.08 trillion won (1.43 billion euros).
Over the next year, the company will accelerate the transition of its business model to future-proofing, including direct-to-consumer initiatives. It aims to expand the deployment of home appliance operating systems and subscription services in international markets. In terms of products, the company will seek to maintain its strategic approach to strengthen leadership positions in key products such as washing machines and refrigerators, while rapidly expanding its product range specific to specific regions. To sustain continued growth in the B2B sector, especially in areas such as HVAC, the company plans to strengthen its capabilities by establishing a complete, local business management that includes product development, manufacturing and sales, focusing on the obvious electrification trends in regions such as North America and Europe.
LG Vehicle component Solutions Company In 2018, sales amounted to 10.1 trillion won (6.98 billion euros), while operating profit was 133 billion won (92 million euros). Not only did the company surpass the 10 trillion won (€6.91 billion) mark in sales in its tenth year since its founding, but it also posted growth for the eighth consecutive year since the company began publishing its results in 2015. The share of the total consolidated trade volume has increased to 12%. In 2024, the company’s goal is to promote both external growth through a significant volume of orders and qualitative growth in its operations. In the field of automotive infotainment systems, the company is dedicated to providing software-based vehicle capabilities in response to the needs of OEMs. Based on the distinctive technologies accumulated in the home appliance and IT industries, the company will strive to further improve the automotive customer experience. In the field of electric drives, the main focus will be on strengthening product capabilities and early stabilization of foreign production bases to improve the ability to respond to customer demands.
LG Home Entertainment Company operated with 14.2 trillion won (9.8 billion euros) in sales and 362 billion won (250 million euros) in operating profit last year. To webOS the platform-based content and services business strengthened its position as a new source of revenue, showing a significant increase in operating profit compared to the previous year. The volume of trade decreased slightly, as the demand for such items recovered very slowly premium products like OLED. With the forecast of a gradual rise in demand for TVs, the company will look to strengthen both its premium OLED product range and QNED product range, pursuing a two-pronged strategy to take the lead premium product market. At the same time, the company is accelerating its transformation into a media and entertainment giant. It is expected that this year webOS the platform business will provide a significant trading volume of several trillion won.
LG Business Solutions Company 2018’s sales volume was 5.4 trillion won (3.7 billion euros), but operating losses amounted to 42 billion won (29 million euros). The volume of trade decreased slightly compared to the previous year due to the delayed recovery of IT demand and lower investments by key companies. Profitability was impacted by higher investments in future growth areas such as robotics and electric car charging. This year, the company plans to offer a competitive range of IT products, including video game monitors and LG gram Pro, and will actively seek business opportunities targeting vertical segments such as public administrations and schools. How to LG A leader in B2B business, it seeks to accelerate the transition from the delivery of individual products to the integration and provision of by-product solutions. As the company has a significant proportion of new business, investments will be prioritized to prepare for the future rather than deliver short-term results.
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Par LG Electronics Inc.
LG Electronics is a global innovator in technology and consumer electronics, operating in nearly every country, employing a total of more than 74,000 people. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – In 2023, the total trade volume will reach more than 57.68 billion euros (84 trillion South Korean won). LG is a leading consumer and commercial products company that manufactures televisions, home appliances, air purification solutions, monitors, cleaning robots, automotive components, and its premium LG SIGNATURE and the intelligent LG ThinQ brands are known all over the world. Visit the website www.LGnewsroom.comto see the latest news.
LG Electronics
2024-02-07 14:41:39
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