LG reports second highest Q1 revenue and strong profitability in First-Quarter 2023 Results
The company attributes success to improved operations efficiency while expanding B2B and non-hardware businesses.
LG Electronics Inc. announced its first-quarter 2023 results, reporting revenues of KRW 20.4 trillion, which is the second-highest first-quarter revenue in the company's history, and an operating profit of KRW 1.5 trillion, the third-highest first-quarter profitability.
The company attributes these achievements to improving its business structure and operational efficiency. Despite challenging global economic conditions affecting profitability, LG has expanded its B2B segment and non-hardware business areas such as content and services, which are contributing significantly to its growth.
Directly benefiting from the Continuous growth driven by the rapid expansion of the B2B segment, is The LG Home Appliance & Air Solution Company which recorded its highest first-quarter revenues, with operating profit exceeding KRW 1 trillion in sales for the first time.
The strong performance of the unit was fueled by sales of energy-efficient heat pump-enabled products as well as energy storage systems. According to the company, LG’s industry-leading heating, ventilation, and air conditioning (HVAC) solutions for homes and businesses deliver strong performance and energy efficiency that reflect current European market trends based on tighter environmental regulations.
Meanwhile, The LG Vehicle Component Solutions Company recorded its highest first-quarter revenues ever after achieving first-quarter sales of KRW 2.39 trillion with an operating profit of KRW 54 billion.
LG explained that despite the cloud of uncertainty affecting the overall global automotive industry, the demand for electric vehicles is forecasted to expand. The company will sustain its competitive edge based on its stable portfolio of in-vehicle infotainment systems, e-Powertrain, headlamps, and its distinctive solutions.
Another unit that reported improved revenue was the LG Business Solutions Company. The company credits its proactive response to the academic season by meeting its demand and offering competitive products, including the new Ultraslim LG gram laptop computers.
Furthermore, the company plans to expand its information display business through customized solutions and discovering new customer demand. LG further stated that it also aims to develop new business segments, especially in South Korea, by integrating robots and electric vehicle chargers in its production systems to meet the potential demand of these markets in the foreseeable future.
