LG Electronics Inc. (LG) shared its financial results for 2024, reporting a record revenue of KRW 87.73 trillion and an operating profit of KRW 3.42 trillion. This is the highest annual revenue in the company’s history.
The home appliances and vehicle components businesses grew for the ninth year in a row, helping LG reach this revenue milestone. The LG Home Entertainment and Business Solutions sectors also saw revenue increases compared to last year.
However, the operating profit dropped slightly from last year. This was mainly due to external issues like slow recovery in global demand for home appliances and higher logistics costs in the latter half of the year. Even with these difficulties, the company maintained a stable profit overall, thanks to improvements from restructuring its business and increased sales.
2024 Business Performance
The LG Home Appliance & Air Solution Company announced a revenue of KRW 33.2 trillion in 2024. This marks the second year in a row that its annual revenue has exceeded KRW 30 trillion. The Company achieved strong growth, with operating profit reaching KRW 2.04 trillion, despite facing higher logistics costs. This is the first time since 2021 that operating profit has gone over KRW 2 trillion.
The Company’s growth came from new business models, including home appliance subscriptions and Direct-to-Consumer sales, with subscription revenue jumping over 75 percent from the previous year, approaching KRW 2 trillion. The B2B segment, including heating and air conditioning systems, also continued to grow.
The LG Home Entertainment Company had a revenue of KRW 15.23 trillion and an operating profit of KRW 315.9 billion in 2024. Sales of OLED TVs increased in regions like Europe and Asia due to global sports events. Moreover, the webOS-based advertising and content business exceeded KRW 1 trillion in annual revenue.
The LG Vehicle Component Solutions Company reported a revenue of KRW 10.62 trillion in 2024, marking its second year above KRW 10 trillion. Despite a temporary dip in electric vehicle demand, the Company achieved steady revenue growth for the ninth year, backed by a strong order backlog. However, operating profit fell to KRW 115.7 billion compared to last year due to higher development costs and investments in software-defined vehicles (SDV).
The LG Business Solutions Company reported a revenue of KRW 5.69 trillion in 2024 but faced an operating loss of KRW 193.1 billion. The revenue increase came from customized commercial displays for hotels, stores, and schools, along with premium IT products like the LG gram. Nonetheless, the Company struggled with operating losses due to rising raw material prices and tougher market competition.
2025 Business Directions
LG is committed to growing its business through innovation, even with the fast changes in the global market. After reorganizing its business units last year, LG plans to improve cooperation between different parts of the company and increase efficiency. The focus will also be on enhancing the quality and cost-effectiveness of its products while ensuring profitability.
The LG Home Appliance Solution Company will introduce new products tailored to specific regions and incorporate AI technology to boost sales of its large appliance lines. The Company aims to develop AI home solutions to create homes that reduce manual labor and allow more quality time. Additionally, it will expand its subscription services beyond Korea, Malaysia, and Taiwan to countries like Thailand and India.
The LG Media Entertainment Solution Company plans to increase sales of premium items such as OLED and QNED TVs while offering unique customer experiences through AI. The Company will combine its TV, IT devices, and display businesses to create better cooperation and efficiency. Furthermore, webOS will evolve into a unified platform for content and services for both indoor and outdoor use, supported by ongoing content investment and partnerships.
The LG Vehicle Solution Company aims to move beyond just supplying vehicle parts and become a provider of complete solutions for vehicle experiences. It will focus on developing self-driving vehicle technology for the future and will work to maintain steady revenue while improving profits through better product choices and operational practices.
The new LG Eco Solution Company wants to quickly grow LG’s HVAC (heating, ventilation, and air conditioning) business to be a global leader, using its strong technology in important parts like motors and compressors. The Company will create local production systems and develop solutions fit for specific regions, offering complete solutions for various settings, from industrial and commercial buildings to residential air conditioners.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on January 23, 2025, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN. To participate in the conference call, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.