LG Releases Third-Quarter 2024 Financial Results: Highest Third-Quarter Revenue Achieved
LG Releases Third-Quarter 2024 Financial Results: Highest Third-Quarter Revenue Achieved
Manila, Philippines – LG Electronics Inc. (LG) has reported its third-quarter 2024 financial results, announcing consolidated revenue of KRW 22.18 trillion and an operating profit of KRW 751.9 billion. This marks the highest revenue ever achieved for a third quarter, with operating profit ranking as the fourth highest in the company’s history.
LG Releases Third-Quarter 2024 Financial Results despite facing several external challenges, including prolonged delays in market demand recovery and ongoing geopolitical conflicts, LG managed to sustain year-over-year revenue growth for four consecutive quarters. These obstacles led to increased global shipping expenses, contributing to higher costs. However, LG’s strategic business portfolio upgrades, including transforming business methods and models and expanding B2B operations, allowed the company to partially offset these costs and maintain a robust operating profit. This signifies LG’s strong fundamental competitiveness.
Looking ahead, LG plans to accelerate its business transformation by expanding home appliance subscriptions, direct-to-consumer (D2C) sales, and volume zone product sales. Additionally, the company aims to drive steady growth in the B2B sector while expanding platform-based content and service businesses.
The LG Home Appliance & Air Solution Company generated third-quarter revenue of KRW 8.34 trillion and an operating profit of KRW 527.2 billion. Compared to the same period last year, revenue increased by 11.7 percent and operating profit by 5.5 percent. Despite challenging external conditions, LG’s home appliance business outperformed its peers, reaffirming its top-tier competitiveness. The rapid growth of the subscription business model and B2B HVAC business drove revenue expansion, even amidst delayed recovery in global appliance demand. The surge in logistics costs in the second half of the year significantly impacted operating profit, but the company still achieved results exceeding the same period last year due to revenue growth and exceptional manufacturing competitiveness.
In the fourth quarter, market conditions are expected to gradually improve, driven by leading economic indicators in major countries and anticipated interest rate cuts. LG plans to diversify its home appliance lineup and pricing strategy to meet growing demand in emerging markets while expanding new businesses such as subscriptions and D2C sales to maintain revenue growth. The company will focus on efficient operations, considering the seasonal increase in marketing expenses, to secure profitability.
The LG Home Entertainment Company posted third-quarter revenue of KRW 3.75 trillion and an operating profit of KRW 49.4 billion. Revenue increased by 5.2 percent compared to the same period last year, driven by increased shipments in Europe, a key market for OLED TVs. Although the cost burden increased significantly due to a sharp rise in LCD panel prices, the continued growth of the webOS-based content and services business minimized the impact on overall profits.
In the fourth quarter, the TV market is expected to see slight growth, primarily in entry-level products, compared to the same period last year. LG plans to respond flexibly to changes in TV market demand while accelerating growth by expanding its webOS partnerships to increase its user base.
The LG Vehicle Component Solutions Company reported third-quarter revenue of KRW 2.61 trillion and an operating profit of KRW 1.1 billion. Revenue increased compared to the same period last year but slightly decreased from the previous quarter due to a slowdown in electric vehicle (EV) demand. Operating profit also declined, impacted by increased
