LG Electronics announced its consolidated revenue for the third quarter 2022 at 21.2 trillion Korean won, an increase of 14.1% from the same quarter of the previous year and the highest quarterly revenue in the history of LG Electronics.
Third-quarter operating profit for LG Electronics was 746.6 billion Korean won, up 25.1% from the same quarter a year earlier.
In the third quarter, the company posted revenue growth driven by increased sales of premium appliances, including new home appliance and auto parts categories.
However, taking into account one-time costs last year, operating profit fell due to weak demand caused by the global economic slowdown.
LG’s home appliance and air solutions business posted revenue of 7.5 trillion Korean won in the third quarter, up 5.8% from the same quarter a year earlier, posting the highest third-quarter revenue in history of the business unit.
Operating profit of KRW 228.3 billion was lower than last year due to increased marketing investments and higher logistics costs.
The revenue increase was due to strong sales of high-end appliances, including new appliance categories such as steam technology hygiene products in key regions of North America and Europe. The business unit plans to continue its momentum by improving the competitiveness of premium products and reinforcing its line of FMCG products, along with managing the cost structure to improve profitability.
LG Home Entertainment Company posted third-quarter revenue of KRW 3.7 trillion and an operating loss of KRW 55.4 billion, reflecting increased marketing investments in response to intensifying competition in the market. market. LG’s Home Entertainment strategy will focus on effective marketing spend management and driving the premium TV segment, as well as agile inventory management.
LG Vehicle Component Solutions company achieved third-quarter sales of KRW 2.3 trillion, an increase of 45.6% over the same period in 2021, marking the highest quarterly revenue for the business unit.
Operating profit for the third quarter of 2022 was 96.1 billion Korean won. The significant increase in sales was driven by the proactive response to increased demand from automakers for efficient supply chain management. The company will continue to build strong relationships with automakers around the world and work to increase profitability through efficient cost structure management.
LG Business Solutions Company posted third-quarter revenue of KRW 1.4 trillion, with an operating loss of KRW 14.4 billion caused by rising raw material costs and global logistics costs.
Revenues were up 9.7% from a year ago, largely thanks to a recovery in the B2B segment. The company plans to focus on the B2B segment, which is recovering, by developing more customized solutions and expanding its product portfolio to achieve stable growth, along with stabilizing the supply of major components, actively reducing of costs and more efficient management of resources.
With information from Nicholas Lucas.
