Monday, 28 April 2025
29 C
Singapore
29.4 C
Thailand
20.3 C
Indonesia
28.4 C
Philippines

LG records historic financial performance in the second quarter

LG Electronics achieves record-breaking financial results in Q2 2024, with significant growth driven by innovative strategies in home appliances and vehicle components.

LG Electronics has announced a historic performance for the second quarter of 2024, achieving unprecedented consolidated revenue and operating profit. The company recorded a revenue of KRW 21.69 trillion and an operating profit of KRW 1.20 trillion, which represents an 8.5% year-over-year increase in revenue and a 61.2% surge in operating profit.

Record-breaking growth in core businesses

This remarkable performance is largely attributed to the stellar results from the home appliance and vehicle component sectors, both reporting their highest quarterly revenues ever. The combined revenue from LG’s Home Appliance & Air Solution Company and Vehicle component Solutions Company was KRW 11.53 trillion, up 8.2% from the previous year. These sectors also saw a significant boost in operating profits, totalling KRW 776.1 billion—a 45% increase from the same period last year.

LG’s success reflects its strategic focus on balanced growth, ensuring the expansion of its core businesses while enhancing profitability and market presence.

Strategic expansions and innovative approaches

The company’s business-to-business (B2B) sector has made considerable advances, helping to shape a future-oriented business framework. Despite facing challenges such as a temporary slowdown in electric vehicle (EV) demand, the vehicle component business has continued to grow, bolstered by a diverse clientele and a robust order backlog. Moreover, LG’s heating, ventilation, and air conditioning (HVAC) sector is tapping into the AI infrastructure market with its high-efficiency chillers, positioning the company for further growth.

In the consumer sector, LG innovates by blending traditional hardware sales with intangible elements like content, services, and subscriptions. This integration is evident in expanding the webOS content and services business, which is now moving beyond TVs to include IT and infotainment, with projected revenues exceeding KRW 1 trillion this year.

Additionally, LG’s subscription business model is quickly gaining popularity. Following its success in Korea, LG is extending this model internationally. For instance, LG Rent-Up in Malaysia offers subscriptions for various products, including washing machines, dryers, and refrigerators.

Future outlook and market adaptation

LG is preparing for the next quarters with a strategy to adapt to market changes swiftly and further expand its B2B sectors, particularly in HVAC and built-in appliances. The recent acquisition of smart home platform company Athom is expected to enhance synergies within the home appliance sector.

The LG Vehicle component Solutions Company has seen a positive shift in its operating profit this quarter, focusing on expanding its array of premium products and safety solutions. The LG Home Entertainment Company experienced a 15% increase in revenue, driven by strong European demand for premium OLED TVs, although rising LCD panel prices posed a challenge.

The LG Business Solutions Company saw a 9.9% increase in revenue, spurred by demand for strategic products such as LED signage and gaming monitors. However, higher costs and ongoing investments in emerging areas like EV charging and robotics impacted profitability.

As LG continues to innovate and adjust to the evolving market landscape, it remains on track to sustain its growth momentum, capitalising on its global manufacturing capabilities and strategic business expansions.

Hot this week

Poco F7 Pro review: Improved battery, flagship feel at a value price

The Poco F7 Pro offers flagship performance, a vibrant display, and great battery life at a value price, with solid camera results too.

GenAI investment could unlock ‘co-working’ future in financial services, says Moody’s

Moody’s sees GenAI transforming finance with AI co-workers, helping firms grow, automate decisions, and lower access barriers.

GitLab announces general availability of GitLab Duo with Amazon Q

GitLab announces the general availability of GitLab Duo with Amazon Q, combining DevSecOps and AI to accelerate secure software development.

Bowers & Wilkins unveil updated headphones and McLaren-themed earbuds in Singapore

Bowers & Wilkins launches Px7 S3 headphones and Pi8 McLaren earbuds in Singapore. These headphones blend high-quality sound with comfort and stylish design.

NVIDIA uses AI to address climate, wildlife and disaster risks

NVIDIA’s AI tools support climate action, wildlife monitoring, and disaster risk mitigation, with uses spanning sea, land, sky and space.

Gitex Asia x Ai Everything Singapore highlights robotics, AI and next-gen tech at inaugural event

Gitex Asia x Ai Everything Singapore highlights robotics, AI, startups, and tech innovations, shaping Southeast Asia’s digital future.

Lenovo introduces new ThinkPad mobile workstations and business laptops for the AI-ready workforce

Lenovo refreshes its ThinkPad lineup with new AI-ready mobile workstations and business laptops, enhancing mobility, performance, and security.

SquareX secures US$20 million to transform browser security

SquareX raises US$20 million to strengthen browser security, offering enterprises an easy way to protect users without disrupting their workflows.

Smart Communications acquires Joisto to strengthen cloud archival capabilities

Smart Communications acquires Joisto to expand cloud-based customer conversation and archival solutions, strengthening its leadership in CCM and IXM.

Related Articles

Popular Categories