LG Electronics achieved its highest-ever sales in the first quarter of this year, but its operating profit dropped due to higher logistics and raw material costs.
The company reported preliminary results on April 7, showing first-quarter sales of 22.74 trillion won ($15.5 billion), up 7.8% year-on-year, while operating profit decreased by 5.7% to 1.26 trillion won ($860 million). This marks the first time LG Electronics has surpassed 22 trillion won in quarterly sales. Detailed business performance will be disclosed later this month.
The record sales were driven by growth in core business areas, including business-to-business (B2B) and subscription services. The built-in home appliance business, along with components such as motors and compressors, contributed to the strong results. The HVAC (heating, ventilation, and air conditioning) business, a key focus for LG, is expected to exceed last year’s figures. Large overseas contracts are also fueling growth in commercial air conditioning systems and displays.
Subscription services combining products and services saw continued growth, and LG plans to expand its subscription product lineup, enhance care services, and increase its international presence. In the media sector, LG’s ad and content services, based on its webOS operating system, are performing well.
While operating profit remained above 1 trillion won for the sixth consecutive year, it dropped by 5.7% compared to last year, mainly due to rising logistics, raw material, and labor costs.
Looking ahead, LG Electronics plans to expand its market presence with new AI-powered TVs and air conditioners. The success of the AI-driven LG Whisen Stand Air Conditioner led to full production at the Changwon plant. In the automotive sector, LG aims to expand its high-value products for vehicle infotainment and diversify into vehicle content platforms.
