LG Electronics sees third year of record revenue

[Photo by Han Joo-hyung]

LG Electronics Inc. saw its revenue hit record levels for a third consecutive year, primarily driven by growth in business-to-business (B2B) transactions and its automotive solutions business.

LG Electronics announced on Monday that it reported cumulative revenues of 84.28 trillion won ($64 billion) and operating profits of 3.55 trillion won as of the end of 2023. Revenues increased by 1 percent and operating profits saw a slight decrease of 0.1 percent Compared to the previous year, and in the fourth quarter alone both revenues and operating profits surged by 6 percent and 351 percent year-on-year, hitting 23.16 trillion won and 312.5 billion won respectively.

The home appliances business, supported by B2B sector growth, was a significant contributor to the company’s 30 trillion won annual revenue. The company expanded its B2B portfolio in areas including heating, ventilation, and air conditioning systems, components, and built-in products. “Efforts to enhance the portfolio and business model innovations led to robust profitability,” the company explained.

The automotive solutions business also contributed significantly to the revenue growth, surpassing 10 trillion in annual revenue a decade after its inception.

The TV business faced a decline in demand as Covid-19 became endemic, resulting in decreased revenue. But the company succeeded in offsetting the decline in TV revenue by expanding the ecosystem for its Linux-based smart TV operating system, webOS, to grow its content and platform services.

LG Electronics plans to continue fostering its future-oriented businesses in 2024. Within the business solutions segment, the company is determined to make electric vehicle charging, robotics, and signage key focus areas, and is particularly expediting efforts in the electric vehicle charging business.