NAIROBI, Kenya, May 3 – LG Electronics Inc. (LG) has reported a Sh153.15 billion profit for the first quarter of 2023, the third highest first-quarter profitability in the company’s history.
Revenue for the same period is reported at Sh2.08 trillion, the second-highest first-quarter revenue in the company’s history.
The record growth in revenue is attributed to improved business structure and operational efficiency despite the profitability being impacted by challenging global economic conditions.
“The company’s business structure improved with its continuously expanding B2B segment and non-hardware business areas, such as content and services, which are achieving significant growth,” LG Electronics Inc CEO William Cho said.
LG Home Appliance & Air Solution Company recorded the highest revenues of Sh819.04 billion with an operating profit of Sh104.17 billion.
The business unit recorded its highest first-quarter revenues, with operating profit exceeding Sh102.12 billion in sales for the first time.
Continuous growth was driven largely by the rapid expansion of the B2B segment, fueled by sales of energy-efficient heat pump-enabled products as well as energy storage systems.
LG’s industry-leading heating, ventilation and air conditioning (HVAC) solutions for homes and businesses deliver strong performance and energy efficiency that reflect current European market trends based on tighter environmental regulations.
“The company will focus on maintaining the competitiveness of its premium appliances as well as strengthening its mass-tier appliance lineup in response to the polarization of market demand, along with managing cost structure to enhance profitability,” said Cho.
The appliance business expects to see continued growth by focusing on the expanding B2B segment and accelerating the service segment including the rental and care service business, which has reached an average annual growth rate of 30 per cent in South Korea over the past 5 years.
The LG Home Entertainment Company recorded first-quarter sales of Sh343.14 billion with an operating profit of Sh20.46 billion attributed to effective management of operational costs through enhanced demand forecasting.
Despite lower global TV demand caused primarily by challenging economic conditions in Europe, the company saw increased sales of the growth of content and services businesses based on LG’s webOS smart TV platform, while strengthening operation competitiveness.
