LG Electronics (LG) has announced first-quarter 2022 consolidated sales of over R280.3 billion (USD 17.53 billion) – the highest quarterly revenue in company history. Operating profit of over R24.9 billion (USD 1.56 billion) was positively impacted by royalty income, partially offset by a one-time workforce restructuring cost.
Compared with the first quarter a year ago, revenues grew by 18.5% and profitability soared by 6.4%, reflecting very strong demand for LG home appliances as consumers around the world continue their focus on healthier living, energy efficiency and home upgrades. The vehicle component business unit’s sales increased driven by higher demand for auto parts as a result of a proactive and pre-emptive response to shortages of automotive semiconductors.
The LG Home Appliance & Air Solution Company generated first-quarter sales of over R105.8 billion (USD 6.62 billion), with operating profit of R5.9 billion (USD 371.68 million). Sales increased 18.8% from the same quarter last year, recording the business unit’s highest quarterly revenue. Stable growth was driven largely by strong performance in premium appliances and new categories, such as hygiene products applied with steam technology. The appliance business expects to see continued growth by expanding overseas sales in new appliance categories.
The LG Home Entertainment Company recorded sales of R54.1 billion (USD 3.38 billion) with an operating profit of R2.5 billion (USD 156.44 million). Sales increased 1.4% from the same period a year ago, driven by continued demand for premium products including OLED and large-screen TVs in Europe and North America. The business unit expects continued growth by expanding sales of premium TVs, including LG OLED TVs, QNED TVs and large-screen TVs.
The LG Vehicle Component Solutions Company achieved first-quarter sales of R24.9 billion (USD 1.56 billion). The sales increase of 8.5% from the same period last year reflected a preemptive response to shortages of automotive semiconductors. The business unit’s first-quarter operating loss is narrowing to R83.7 million (USD 5.23 million), and the company has implemented better cost management to further improve profitability.
The LG Business Solutions Company saw improved first-quarter revenues of R26.7 billion (USD 1.67 billion), an increase of 23.7% from a year ago largely on the back of continued demand for products such as monitors and PC products in the beginning of academic season and recovery of the B2B segment, while product competitiveness and operational efficiencies also improved.
2022 1Q exchange rates explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending 31 March 2022. Amounts in Korean won (KRW) are translated into US dollars (USD) at the average rate of the three-month period of the corresponding quarter – KRW 1 204.26 per USD.
Earnings conference and conference call
LG Electronics held a Korean/English conference call on 28 April 2022 at 4pm Korea Standard Time (9am SAST). A recording of the call is available along with the corresponding presentation file for download at the LG Electronics website.
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LG Electronics, Inc.
LG Electronics is a global innovator in technology and consumer electronics with a presence in almost every country and an international workforce of more than 75,000. LG’s four companies – Home Appliance & Air Solution, Home Entertainment, Vehicle component Solutions and Business Solutions – combined for global sales of over USD 63 billion in 2021. LG is a leading manufacturer of consumer and commercial products ranging from TVs, home appliances, air solutions, monitors, service robots, and automotive components. Its premium LG SIGNATURE and intelligent LG ThinQ brands are familiar names world over. Visit www.LGnewsroom.com for the latest news.