LG Electronics has reported record-breaking revenue for 2024, with significant contributions from its home appliances and vehicle components divisions. Despite facing challenges in global demand recovery and rising costs, the company achieved its highest annual revenue to date, reflecting steady growth in key sectors.
Record-breaking financial performance in 2024
LG Electronics Inc. announced that its consolidated revenue for 2024 reached KRW 87.73 trillion, setting a new milestone as the highest in the company’s history. Operating profit for the year was reported at KRW 3.42 trillion, demonstrating LG’s ability to maintain financial stability amid economic uncertainties.
The growth was driven largely by the home appliances and vehicle components segments, each continuing a nine-year streak of increasing revenues. The LG Home Entertainment Company and Business Solutions Company also contributed positively, registering revenue improvements over the previous year.
However, operating profit saw a slight decrease compared to the prior year. The decline was mainly attributed to a delayed recovery in the global demand for home appliances and increased logistics costs during the latter half of 2024. Despite these setbacks, LG sustained a solid profit structure through strategic changes in its business portfolio and capitalising on operational efficiencies from enhanced sales.
Key business performance highlights
In 2024, the LG Home Appliance & Air Solution Company reported a revenue of KRW 33.2 trillion. This marked the third consecutive year that the company has exceeded KRW 30 trillion in annual revenue. The division achieved an operating profit of KRW 2.04 trillion, surpassing KRW 2 trillion for the first time since 2021. This growth was supported by the expansion of home appliance subscriptions and direct-to-consumer sales, with subscription revenues rising by over 75% from the previous year.
The LG Home Entertainment Company posted revenue of KRW 15.23 trillion, with an operating profit of KRW 315.9 billion. Sales of OLED TVs grew, particularly in Europe and Asia, influenced by major global sports events. The company also saw its webOS-based advertising and content business exceed KRW 1 trillion in annual revenue.
The LG Vehicle Component Solutions Company reported KRW 10.62 trillion in revenue, making it the second consecutive year that the division surpassed KRW 10 trillion. Although operating profit dipped to KRW 115.7 billion, this was mainly due to increased R&D investments and higher development costs for new projects aimed at transitioning to software-defined vehicles (SDVs). Stable growth was maintained through a strong backlog of orders.
The LG Business Solutions Company experienced an increase in revenue, reaching KRW 5.69 trillion, driven by customised commercial display solutions and premium IT products. However, it faced an operating loss of KRW 193.1 billion due to rising raw material prices and intense market competition.
Strategic focus for 2025
Looking ahead to 2025, LG Electronics is focusing on innovation across its business units to maintain growth amidst a challenging global environment. The company aims to enhance synergies between its various operations and improve overall efficiency.
The LG Home Appliance & Air Solution Company is set to introduce region-specific products incorporating AI technology, expanding its subscriptions business into new markets, including Thailand and India. This aligns with LG’s vision for a “Zero Labour Home,” offering solutions that free up time for consumers.
The LG Media Entertainment Solution Company will concentrate on premium products like OLED and QNED TVs, with plans to enhance customer experience through AI-powered features. This division will also integrate LG’s TV, IT device, and information display operations to create synergies across hardware and platform businesses.
LG’s Vehicle Solution Company aims to expand its role from a vehicle component supplier to a comprehensive solutions provider for the automotive industry. The focus will be on developing software-defined vehicle capabilities and leveraging existing order backlogs to ensure steady revenue.
The newly formed LG Eco Solution Company has ambitious plans to become a leading player in the HVAC market. It will develop comprehensive solutions tailored for diverse spaces, including industrial, commercial, and residential applications.
LG’s commitment to innovation and strategic investment across its key business areas underpins its goal for sustainable growth, despite the uncertainties in the global market.
