LG CNS sees strong growth with cloud, logistics expansion

LG CNS CI

LG CNS, the IT affiliate of LG Group, is reporting steady growth by leveraging its cloud computing and smart logistics sectors. The company is moving beyond traditional IT services such as system integration (SI) and system management (SM), expanding into digital transformation (DX) areas that use artificial intelligence and other advanced technologies.

LG CNS announced on Thursday that its consolidated operating profit for the third quarter of 2024 was 142.8 billion won ($101 million), up 60.1 percent year-on-year. Revenue for the same period rose by 12.6 percent to 1.43 trillion won. For the first three quarters, cumulative revenue increased by 7.0 percent on-year to 3.95 trillion won, with cumulative operating profit up 17.5 percent to 312.8 billion won.

The company’s cumulative revenue has shown an upward trend annually. Its cumulative revenue of 2.15 trillion won in 2020 has nearly doubled to approach the 4 trillion won mark in 2024. Cumulative operating profit grew from 120.9 billion won to over 300 billion won during the same period.

LG CNS attributes its positive results to the growth of key DX businesses, including cloud computing, smart logistics, and next-generation enterprise resource planning (ERP) system development. The company has also been increasing its focus on external clients, reducing the proportion of internal transactions to below 60 percent.

A leader in the app modernization (AM) and managed service provider (MSP) markets, LG CNS has been helping emerging markets in Southeast Asia, such as the Philippines, optimize cloud performance for applications like accounting systems, smartphone apps, and e-commerce platforms. LG CNS has also partnered with global cloud service providers, including Microsoft and Google Cloud, to strengthen its cloud-based generative AI projects.

Smart logistics is another standout business for LG CNS. The company offers a “robot integration platform” as a subscription service, enabling the centralized control, management, and operation of various automated guided vehicles (AGVs) and AI-driven picking robots, regardless of control system differences. A company representative explained that the platform supports logistics center intelligence by implementing systems that optimize order fulfillment workflows.

LG CNS is also advancing its generative AI initiatives through its “AI Center” and “Gen AI Studio.” Projects currently underway include AI-generated marketing images tailored for manufacturing companies, AI platform development for credit card firms, AI-powered customer service chatbots for banks, and generative AI services specifically for government administration.

The company is additionally progressing with its initial public offering process, aiming for a listing on the Korea Stock Exchange in the first half of 2025. Market analysts estimate LG CNS’s valuation to exceed 5 trillion won.