LG Celebrates Biggest Revenue Ever In June Quarter
LG has hailed its highest quarterly revenues ever, with skyrocketing sales driven mainly by home entertainment and appliances.
The South Korean tech giant and major rival to Samsung saw worldwide consolidated revenues grow 48.4 per cent year-on-year in the June quarter, reaching KRW 17.11 trillion ($20.66 billion AUD), while profits were up 65.5 per cent year-on-year to KRW 1.11 trillion ($1.34 billion AUD).
This came off the back of strong sales in both Home Appliance & Air Solutions and Home Entertainment. Home Appliance and Air Solutions revenue was up 32.1 per cent year-on-year to KRW 6.81 trillion ($8.27 billion AUD), with a 6.8 per cent boost in operating profit, which LG attributes to stronger sales in non-Korean markets and improved management of resources.
“Costs are expected to increase as raw materials become scarcer while the pandemic-impacted world begins to return to normal.
“Product competitiveness and operational efficiencies are expected to help LG maintain sales and profit momentum for major appliances in key markets,” the company says.
Home Entertainment, meanwhile, grew revenue by 71.1 per cent year-on-year to KRW 4.04 trillion ($4.87 billion AUD) with a staggering 216.4 per cent rise in operating profit, attributed to “the growing popularity of premium OLED TV products and the recovery of the global TV market, which was negatively affected last year due to retail store shutdowns”.
“With the price of TV panels continuing to rise, LG’s Home Entertainment strategy will centre on growing the premium TV segment and nimble inventory management,” LG said.
Vehicle Component Solutions and Business Solutions also saw a lift in revenue, though Vehicle Component Solutions chalked up a loss due to a spike in the price of automotive semiconductors.
As Mobile Communications has been wound up, figures from this segment were dropped from LG’s quarterly earnings reports.