Demonstrating Results in Home Appliance Business through Premium Strategy and Cost Competitiveness

LG Electronics recorded consolidated revenue of 61.3963 trillion won and operating profit of 2.4685 trillion won last year. Revenue and operating profit increased 10.9% and 84.5% year-over-year, respectively. LG Electronics surpassed 60 trillion won in annual revenue for the first time in history last year, and recorded the highest operating profit since 2009.

In particular, the performance of the home appliance business leveraging premium strategy and cost competitiveness stood out notably. The H&A Business Unit strengthened its dominance in the global premium market, achieving record highs in revenue (19.2261 trillion won), operating profit (1.4890 trillion won), and operating profit margin (7.7%). The HE Business Unit, which has led the popularization of OLED TVs, also recorded all-time highs in operating profit (1.5667 trillion won) and operating profit margin (8.4%).

Fourth quarter revenue last year was 16.9636 trillion won, and operating profit was 366.8 billion won. Revenue represents the highest quarterly revenue on record, increasing 14.8% year-over-year, and operating profit returned to profitability.

The H&A Business Unit recorded revenue of 4.3294 trillion won and operating profit of 80.7 billion won. Revenue increased 6.8% year-over-year, driven by increased sales of new growth products such as TwinWash washers, dryers, and stylers in the domestic market, as well as favorable performance in growth markets such as Central and South America and Asia.

The year-over-year decline in operating profit is due to increased marketing investments in ultra-premium brands such as 'LG SIGNATURE' and 'SIGNATURE KITCHEN SUITE', as well as proactive execution of investments to secure future growth engines such as artificial intelligence and robotics. Additionally, LG is expanding local infrastructure investments to strengthen market dominance by leading with premium products in the United States, a strategic market.

The HE Business Unit recorded revenue of 5.4751 trillion won and operating profit of 383.5 billion won. Revenue increased 14.2% year-over-year, driven by increased sales of premium products such as OLED TVs and Ultra HD TVs.

Operating profit increased 133.8% year-over-year through expanded sales of premium products such as OLED TVs, despite increased peak season marketing expenses, maintaining high profitability.

The MC Business Unit recorded revenue of 3.0655 trillion won and operating loss of 213.2 billion won. Revenue increased 9.2% quarter-over-quarter with the launch of the premium smartphone V30.

Operating losses continued due to rising prices of key smartphone components and V30 marketing expenses. However, through continuous business structure improvements, the annual operating loss for last year improved by 500.9 billion won compared to the previous year.

The VC Business Unit recorded revenue of 856.7 billion won and operating loss of 41.1 billion won. While the EV component business grew, revenue remained at similar levels year-over-year due to temporary decline in new vehicle sales from some key customers in the vehicle infotainment business. Operating losses continued due to advance investments for future growth.

The home appliance market is expected to see continued increase in demand for premium and energy-efficient products. The H&A Business Unit will expand sales of premium products by leading with TwinWash washers, Knock-On Magic Space refrigerators, and others. Additionally, the unit will actively respond to demand for premium small appliances such as the Cordless CordZero A9 vacuum cleaner and PuriCare air purifiers, as well as new growth products such as Tromm dryers and stylers.

The TV market is expected to grow compared to the previous year with two major global sporting events scheduled this year. The HE Business Unit plans to expand sales of premium products centered on OLED TVs, while continuing cost improvement activities to maintain a stable profit structure.

The MC Business Unit will restructure its smartphone lineup from premium to mass-market segments to improve profitability. Additionally, it will continue to improve business structure by enhancing product competitiveness through LG-unique R&D innovation and manufacturing innovation such as platform optimization and modular design architecture.

As global automakers actively enter the EV market, the EV component market is expected to continue expanding. The VC Business Unit plans to actively respond to growing EV component demand, building on the success of GM's Chevrolet Volt EV.

LG Electronics plans to strengthen its image as a leader in artificial intelligence through the recently launched global AI brand 'ThinQ', while also expanding its business scope in the robotics sector, a key pillar of future business.

Meanwhile, LG Electronics plans to ensure uninterrupted supply for volumes provided to the local market in order to minimize impact on local dealers and consumers regarding the recent U.S. government decision to apply safeguards to washing machines and solar panels.

The washing machine plant under construction in Tennessee will be operational from early next year to the fourth quarter of this year, and LG plans to further strengthen market dominance by expanding sales of large-capacity premium products excluded from safeguards. For solar panels, the company's policy is to continue pursuing the global market including the United States, focusing on high-efficiency premium products with competitive advantages.