LG ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2024 FINANCIAL RESULTS

Company achieves highest annual revenue as home appliances and vehicle components continue growth for ninth consecutive year

SEOUL, Jan. 23, 2025 — LG Electronics Inc. (LG) announced its financial results for the year 2024, disclosing a consolidated revenue of KRW 87.73 trillion ($96.8 billion AUD)*and an operating profit of KRW 3.42 trillion ($3.77 billion AUD)* This marks a new record for the highest annual revenue in the company’s history.

In terms of revenue, both the home appliances and the vehicle components business continued their growth for the ninth consecutive year, contributing to the company’s highest revenue achievement. The LG Home Entertainment Company and Business Solutions Company also saw an increase in revenue compared to the previous year.

Operating profit experienced a slight decline compared to the previous year, primarily due to external factors such as a delayed recovery in global demand for home appliances and increased logistics costs in the second half of the year. Despite these challenges, the company maintained a stable profit structure on an annual basis. This stability was achieved through qualitative growth resulting from business portfolio restructuring and the operating leverage effect from increased sales.

2024 Business Performance

The LG Home Appliance & Air Solution Company reported a revenue of KRW 33.2 trillion ($36.6 billion AUD)* in 2024. After surpassing KRW 30 trillion ($33 billion AUD)* in annual revenue for the first time two years ago, the Company has continued to demonstrate sustainable performance, achieving double-digit revenue growth last year. Operating profit reached KRW 2.04 trillion ($2.25 billion AUD)*, overcoming the challenges posed by increased logistics costs. This marks the first time since 2021 that the Company has exceeded KRW 2 trillion ($2.2 billion AUD)* in operating profit.

The Company’s qualitative growth was driven by changes in its business models, which include home appliance subscriptions and Direct-to-Consumer sales. Revenue from home appliance subscriptions surged by over 75 percent compared to the previous year, nearing KRW 2 trillion ($2.2 billion AUD)*. In addition, the B2B segment, which includes heating, ventilation, and air conditioning (HVAC) systems, continued to expand.

The LG Home Entertainment Company reported a revenue of KRW 15.23 trillion ($16.8 billion AUD)* and an operating profit of KRW 315.9 billion ($348.4 million AUD)* in 2024. Sales of OLED TVs saw growth in regions such as Europe and Asia, driven by global sports events. Additionally, the webOS-based advertising and content business surpassed KRW 1 trillion ($1.1 billion AUD)* in annual revenue.

The LG Vehicle component Solutions Company reported a revenue of KRW 10.62 trillion ($11.7 billion AUD)* in 2024, marking the second consecutive year it has surpassed KRW 10 trillion ($11 billion AUD)* in revenue. Despite experiencing a temporary slowdown in demand for electric vehicles, the Company demonstrated stable revenue growth for the ninth consecutive year, supported by a high order backlog. However, operating profit decreased to KRW 115.7 billion ($127.6 million AUD)* compared to the previous year, primarily due to increased development costs for new order projects and R&D investments aimed at transitioning to software-defined vehicles (SDV).

The LG Business Solutions Company reported a revenue of KRW 5.69 trillion ($127.6 million AUD)* in 2024, with an operating loss of KRW 193.1 billion ($212.9 million AUD)*. The increase in revenue was driven by a focus on customised commercial displays for sectors such as hotels, stores, businesses and schools, as well as premium IT products like the LG gram. However, the Company continued to face operating losses due to rising raw material prices for key products and intensified market competition.

2025 Business Directions

LG will consistently pursue qualitative growth through business portfolio innovation, despite the rapidly changing global market and competitive environment. Following the regrouping of the company’s business operation units at the end of last year, LG aims to enhance synergies between its businesses and improve operational efficiency. Additionally, LG will focus on strengthening the fundamental competitiveness of its businesses in terms of quality and cost, while securing a sound profit structure.

The LG Home Appliance Solution Company plans to launch new products with regional specialisation and AI applications, aiming to expand sales by increasing sales of its volume zone lineups. The Company will also advance its AI home solution business to achieve its goal of “Zero Labor Home, Makes Quality Time.” Additionally, the subscriptions business will actively expand beyond Korea, Malaysia and Taiwan to include Thailand, India and other regions, continuously creating new opportunities.

The LG Media Entertainment Solution Company aims to expand sales of premium products such as OLED and QNED, while providing differentiated customer experiences through AI features. The Company will integrate operations of LG’s screen-based businesses – including TVs, IT devices and information displays – to enhance synergies between hardware and platform businesses. Additionally, webOS will be developed into an integrated content and services platform for both indoor and outdoor use through continuous content investment and partnership expansion.

The LG Vehicle Solution Company aims to focus on going beyond a supplier of vehicle components to becoming a provider of innovative solutions for the entire vehicular experience. The Company will focus on securing SDV capabilities in preparation for the future. It will also strive to maintain stable revenue based on its order backlogs while improving profitability through product mix enhancement and overall operational improvements.

The newly established LG Eco Solution Company aims to rapidly grow LG’s HVAC business into a global top-tier player by leveraging its core technological competitiveness in key components such as motors and compressors. The Company will focus on building locally self-sustainable production systems and developing region-specific solutions. It will provide comprehensive solutions optimised for various spaces, including industrial, commercial, public and residential facilities, ranging from large chillers to commercial and residential air conditioners.