LG Electronics (LG) announced today that the company’s consolidated sales last year were 83.5 trillion won (according to the European Central Bank’s quarterly average exchange rate of 62 billion euros) and operating profit was 3.6 trillion won (2, 6 billion euros).
In 2022, LG achieved the highest sales volume ever, exceeding 80 trillion won (59.5 billion euros) for the first time in the company’s history, and increased by 12.9% compared to 2021, when sales exceeded 70 trillion won (52 billion euros). The record trading volume points to growth building a strong business foundation, although earnings were impacted by global economic conditions.
The growth of the company’s sales volume in 2022 was driven by strong demand for premium home appliances and automotive spare parts. For the seventh year in a row, the home appliance manufacturing business has shown significant year-on-year growth. Meanwhile, the operating results of LG Vehicle components Solutions reflect a steady improvement in the situation in the automotive industry, and this unit reached 10% of LG’s total sales volume for the first time.
LG Home Appliance & Air Solution Company set a new sales record last year with 29.9 trillion won (22 billion euros), up 10.3% from a year ago. Such results are mainly due to the company’s strategy focused on premium appliances, which includes innovative devices such as LG Styler™ garment care systems, WashTower™ laundry solutions and LG InstaView refrigerators with Craft Ice™. Operating profit in 2022 amounted to 1.1 trillion won (819 million euros), falling compared to the previous year, affected by the increase in marketing investment and logistics costs. The company plans to continue to implement its strategy focused on premium products, improving the competitiveness of premium products, as also strengthening its consumer product range and implementing cost structure management to increase profit results. In addition, the company will focus on the expansion of smart home ecosystems, increasing the range of upgradeable devices in foreign markets.
LG Home Entertainment Company’s sales volume in 2022 was 15.7 trillion won (11.6 billion euros) and operating profit was 5.4 billion won (four million euros). Although lower global demand for TVs negatively impacted sales volume and operating profit compared to 2021, the company’s content and services business based on LG’s smart TV platform has grown tenfold since 2018. In the face of challenging business conditions, the company will focus on expanding the LG Smart TV platform to diversify its overall business portfolio and ensure future growth. In addition, the company will maintain its competitive advantage by developing the premium TV segment, such as OLED and QNED TVs, and by effectively managing marketing expenses.
LG Vehicle component Solutions Company’s sales volume increased by 29.1% last year to 8.6 trillion won (6.4 billion euros), while operating profit was 169.6 billion won (126.5 million euros). The unit’s profitable growth was driven by a proactive response to higher demand from automakers. By the end of 2022, the total value of accumulated auto parts orders is approximately 80 trillion won (€59 billion), reflecting the company’s position as a leading supplier in the global automotive industry. The company will continue its growth by strengthening its global supply network and work to further increase profitability through effective cost structure management.
LG Business Solutions Company posted sales of 6.1 trillion won (4.5 billion euros) last year, up 11.2 percent from a year ago, thanks to a recovery in the information display industry. Operating profit, however, fell due to lower demand for PCs and monitors following the coronavirus pandemic. Looking ahead, the company plans to work on the competitiveness of PCs and monitors while promoting steady growth in the B2B segment by developing more customized solutions.
