LG posts record-breaking 2023 financials fueled by home appliances, vehicle components

MANILA, Philippines – LG Electronics Inc. has announced its financial results for the year 2023, revealing a historic consolidated revenue of KRW 84.2 trillion and an operating profit of KRW 3.55 trillion. This marks the third consecutive year of achieving record-breaking annual revenue for the company.

Despite facing challenges such as an economic slowdown and reduced demand, LG’s core businesses of home appliances and the growing vehicle components sector have shown remarkable resilience, experiencing continuous growth for eight consecutive years. The combined revenue of these sectors exceeded KRW 40 trillion last year, a significant increase from KRW 18 trillion in 2015, accounting for 47.8 percent of total revenue.

LG attributes this performance to strategic efforts aimed at enhancing its business portfolio. The company successfully expanded its B2B business by identifying market turning points early and integrating new business models, including subscription services. Additionally, LG’s innovative content and service business model, leveraging its extensive user base globally, has contributed to robust profitability.

Looking ahead, LG is committed to transforming from a mature business-oriented structure to a future growth-oriented one. The company plans to concentrate its capabilities on breaking through limits and maximizing its business potential, with a focus on additional growth and expanded product coverage, particularly in emerging markets.

The LG Home Appliance & Air Solution Company achieved an annual revenue of KRW 30.14 trillion, marking eight consecutive years of growth. The company aims to accelerate a shift in its business model towards future readiness, including Direct-to-Consumer initiatives. Plans include expanding home appliance operating systems, extending subscription services internationally, and building smart home solutions reflecting the value of “Zero Labor Home.”

In the vehicle components sector, the LG Vehicle Component Solutions Company achieved an annual revenue of KRW 10.1 trillion and operating profit of KRW 133 billion. The company aims to drive external growth leveraging a substantial order backlog and qualitative growth in operations. Focus areas include in-vehicle infotainment and e-Powertrain, with plans to expand premium product orders and improve operational efficiency in headlamps.

The LG Home Entertainment Company recorded an annual revenue of KRW 14.2 trillion and operating profit of KRW 362 billion. The webOS platform-based content and services business showed significant operating profit growth. LG aims to strengthen its top-tier OLED lineup and QNED lineup, leading the premium market, while accelerating its transformation into a media and entertainment powerhouse.

The LG Business Solutions Company recorded an annual revenue of KRW 5.4 trillion and an operating loss of KRW 42 billion. The company is positioning itself with a competitive lineup of IT products and will actively seek business opportunities targeting distinct verticals. As a leader in LG’s B2B business, it aims to accelerate the shift from supplying single products to providing adjacent solutions.

LG Electronics will hold a Korean/English conference call on January 25, 2024, at 16:00 Korea Standard Time. Conference call details are available on the LG Electronics website.

In summary, LG’s 2023 financial results showcase a company overcoming economic challenges, achieving historic revenue, and strategically positioning itself for future growth in diverse sectors.