LG Electronics has delivered its highest-ever second quarter revenues, buoyed by strong home appliance sales and the increased growth of its vehicle components business.
LG reported A$21.39 billion in global revenue for the June quarter, skewing 15 per cent higher than the same quarter a year prior.
Operating profits, however, fell 12 per cent lower year-on-year, to A$868.1 million. This was largely due to supply chain challenges and higher logistics costs, according to the company.
“Given the business impact of the evolving state of the pandemic and economic conditions, LG is leveraging its comprehensive business portfolio, expanding sales from premium to mass-tier products and growing business-to-business areas such as auto parts,” LG explains.
The LG Home Appliance & Air Solution Company reported revenues of A$8.84 billion in the second-quarter, marking the first time in LG history for a single business unit to exceed quarterly revenues of KRW 8 trillion (AUD$8.76 million), with operating profits of A$473.56 million, up 18 per cent from a year prior.
New categories such as hygiene products using steam technology in the key regions of North America and Latin America helped drive this leap.
The LG Home Entertainment Company recorded A$3.79 billion in revenue, with an operating loss of A$20.73 million “reflecting increased marketing investments in response to intensified market conditions.”
LG’s Business Solutions delivered A$1.69 billion in revenue, with operating profits of A$15.67 million. This marked a 19 per cent revenue increase, off the back of the return of the B2B segment.
The LG Vehicle Component Solutions Company saw sales of A$2.23 billion, a 19 percent increase from the same period of 2021, and the first time this division has been profitable.
“The significantly higher sales were driven by LG proactively responding to higher demand from automakers with efficient supply chain management,” LG said.
“With the cloud of uncertainty created by inflation and geopolitical risks, the company will continue to build strong relationships with global automakers along with strong cost structure management to further improve profitability.”