On Thursday, LG Electronics Ltd. (LGEPF.OB, LGEJY.OB, LGEIY.OB, LGEAF.OB) announced a decrease in operating profits for fiscal year 2024, despite experiencing an uptick in overall revenues.
The South Korean consumer electronics giant posted an operating profit of 3.42 trillion Korean Won, marking a slight drop from the previous year. This decline is largely attributed to a sluggish global demand recovery for home appliances and rising logistics costs in the latter half of the year.
Nevertheless, LG achieved consolidated revenue of 87.73 trillion Won, setting a new benchmark for its highest annual revenue to date. The company's home appliances and vehicle components divisions continued to thrive, significantly contributing to this record-breaking revenue. Additionally, both the LG Home Entertainment Company and the Business Solutions Company reported revenue increases.
For 2024, LG Home Appliance & Air Solution Co. recorded a revenue of 33.2 trillion Won, reflecting robust double-digit growth compared to the prior year, with an operating profit reaching 2.04 trillion Won.
Meanwhile, the LG Home Entertainment Company reported revenues amounting to 15.23 trillion Won, alongside an operating profit of 315.9 billion Won. Sales of OLED TVs expanded in Europe and Asia, fueled by global sports events.
Looking forward, LG has stated its commitment to "consistently pursue qualitative growth through business portfolio innovation, despite the rapidly changing global market and competitive environment. Following the reorganization of its business operation units at the end of last year, LG intends to enhance synergies among its businesses and improve operational efficiency."
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