Thursday, March 23, 2023

LG announces its 2022 financial results

In 2022, LG achieved its highest annual revenue, surpassing KRW 80 trillion for the first time in its history, a 12.9% increase from 2021, when sales exceeded KRW 70 trillion for the first time. The sales record reflects continued growth underpinned by strong fundamentals, although full year performance was impacted by difficult global economic conditions.

The company’s revenue growth in 2022 was fueled by strong demand for high-end home appliances and auto parts. For the seventh year in a row, the home appliances unit posted a significant year-on-year growth. The metamorphosis of LG’s vehicle component solutions business in 2022 reflected continued improvements in the automotive industry, and the business exceeded 10% of LG’s total revenue for the first time.

LG Home Appliance & Air Solutions Company posted another record year in 2022 with revenue of KRW 29.9 trillion, an increase of 10.3% over the previous year, as a result of the company’s strategy to focus on premium products including LG Styler Cloth Care System, WashTower includes special home appliances. All-in-One Laundry Center and LG InstaView Refrigerator with Craft Ice. Operating profit for the full year 2022 was KRW 1.1 trillion lower than the previous year due to an increase in marketing investments and logistics costs. The business unit plans to continue its strategy focused on premium products by improving the competitiveness of premium products and strengthening its large-scale product line along with managing the cost structure to improve profitability. In addition, the company will accelerate the expansion of the smart home ecosystem by expanding the range of upgradeable home appliances to overseas markets.

Home entertainment company LG reports revenue of KRW 15.7 trillion and operating profit of KRW 5.4 trillion in 2022. While lower global demand for TVs hurt revenue and operating profit in 2021, the company’s content and services business based on LG’s smart TV platform has grown tenfold since 2018. TV Platforms to diversify its overall business portfolio and secure future growth drivers. In addition, the company will maintain its competitive advantage by driving growth in the premium TV segment such as OLED TVs and QLED TVs as well as by effectively managing marketing spends.

LG Vehicle Component Solutions Company Increased its revenue by 29.1% from 2021 to KRW 8.6 trillion in 2022, with a full-year operating profit of KRW 169.6 billion. The business unit’s profitable growth was fueled by a proactive response to increased demand from vehicle manufacturers. By the end of 2022, the total value of backlog orders for auto parts will be approximately 80 trillion KRW, reflecting the company’s position as a major supplier to the global auto industry. The company will maintain its momentum by strengthening its global supply chain and work to further increase profitability through efficient management of cost structure.

Company Revenue LG Business Solutions KRW 6.1 trillion in 2022, up 11.2% from last year, driven by continued recovery of information disks. Full-year operating profit declined, primarily due to lower demand for PCs and monitors following the pandemic. Looking ahead, the company plans to enhance the competitiveness of PCs and monitors, while continuing to grow by developing more customized solutions in the B2B segment.

Nation World News Desk
Nation World News Desk
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