LG Electronics says its first-quarter consolidated sales reached R280.3 billion − the highest quarterly revenue in company history.
According to a statement, the South Korean electronics manufacturer saw its operating profit reach R24.9 billion for the period under review, attributing the gain to royalty income partially offset by a one-time workforce restructuring cost.
In the statement, LG says compared with the first quarter a year ago, revenue grew by 18.5% and profitability by 6.4% for the three-month period ending 31 March.
This comes on the back of “very strong” demand for LG home appliances, notes the company, pointing out the vehicle component business unit’s sales also increased, driven by higher demand for auto parts.
After announcing its exit from the mobile phone sector, LG said it would focus resources in growth areas such as producing electric vehicle components, connected devices, smart homes, robotics, artificial intelligence and business-to-business (B2B) solutions.
On the local front, LG SA president Jinkook Kang told ITWeb earlier this year that the focus has been on expanding the product offering of the B2B unit and consumer business.
Detailing the earning of each business unit, LG says the vehicle component solutions company achieved first-quarter sales of R24.9 billion.
“The sales increase of 8.5% from the same period last year reflected a pre-emptive response to shortages of automotive semiconductors. The business unit’s first-quarter operating loss is narrowing to R83.7 million, and the company has implemented better cost management to further improve profitability.”
According to LG, the business solutions company saw improved first-quarter revenue of R26.7 billion, an increase of 23.7% from a year ago.
This, explains LG, is “largely on the back of continued demand for products such as monitors and PC products in the beginning of the academic season and recovery of the B2B segment, while product competitiveness and operational efficiencies also improved”.
Turning to home appliances and air solutions, LG notes the business unit generated first-quarter sales of over R105.8 billion, with operating profit of R5.9 billion.
“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.”
LG further expects the appliance business to see continued growth by expanding overseas sales in new appliance categories.
In terms of its home entertainment company, the business unit recorded sales of R54.1 billion, with an operating profit of R2.5 billion.
Says LG: “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.”
Share