EXCLUSICE: LG OZ Delivers Record Profits As Sales Surge
COVID has been kind to LG Electronics Australia after they delivered a $22.2 million dollar profit at December 2021 this was up from the $15.8 million delivered in 2020.
The South Korean business which is known for their premium products and pricing, particulary in the appliance market, lifted revenues to $1,087,575 up from $943,995 in 2020.
On 25 November 2021, dividends of $40,000,000 were declared and paid to the parent Company.
The Company who appointed a new marketing manager in Australia in February 2020 at the start of COVID lockdowns increased their advertising spend from $31,158M this was up from the $16,649 million the Company spent on marketing in 2020. Promotion costs were reduced from $6M in 2020 to $4M in 2021.
The3 business has not said how individual divisions performed with retailers telling ChannelNews that LG appliance have been on back order as demand increased in Australia for premium appliances.
In the TV market LG have been fighting to hold onto market share as the battle between Samsung with their QD OLED technology and LG with their OLED display technology.
Total current liabilities for the Australian business have risen to $222M in 2021, this is up from $142M in the prior year, refund liabilities have rose to $15.4 from $12.9 in 2020.
In a report to the ASX Company directors claimed that “Although the company expects the negative impact of COVID-19 on global economic and market conditions to continue, the duration and extent of the further spread of COVID-19 and resulting changes to local and global government reactions and policies remain uncertain at this time, and therefore the full impact on results of operations remains still unknown”.