LG Electronics (LG) has reported a double-digit growth in its operating profit for the second quarter of 2024, driven by increased sales in home appliances and vehicle components.
The company said both its revenues and operating profit over the quarter reached levels never previously achieved. The consolidated operating profit grew 61.2 percent over the year to 1.2 trillion won (KES115.4b) in the April-June quarter.
Revenues grew 8.5 percent to 21.69 trillion won (KES2.1 trillion), and net income soared 222.3 percent to 629.5 billion won (KES60.1 billion).
The home appliance unit recorded an operating profit of 694.4 billion won (KES66.9b) from 8.84 trillion won (KES850b) in second quarter revenues.
Both the revenue and the operating profit increased in double digits on the back of diversification in product lineup and pricing to meet growing needs in emerging markets.
The vehicle component business generated an operating profit of 81.7 billion won (KES7.9b) from 2.69 trillion won (KES258.9b) revenues in the April-June quarter.
The revenue was the highest for any quarter, while the operating profit was the strongest for the second quarter due to higher demand for premium in-vehicle infotainment products.
The TV-manufacturing division logged an operating profit of 97 billion won (KES9.3b) on revenue of 3.62 trillion won (KES348b).
The revenue grew in double figures in the second quarter from a year earlier, driven by demand recovery in Europe, but the operating profit declined on increased costs.
The business solutions unit registered an operating loss of 5.9 billion won (KES567m) on revenue of 1.46 trillion won (KES140b). The second-quarter revenue rose 9.9 percent on-year, but the profit declined on higher costs.
Growth also continued in the WebOS content and service business but the operating profit declined on account of increased operating costs, including the rising LCD panel prices.
The company expects increased growth in the third quarter driven by increased demand for premium products such as commercial displays and gaming monitors.
“The company will focus on expanding sales of strategic products and improving profitability through efficient resource management,” said LG.
The company aims to grow its smart factory business and anticipates orders of 300 billion won (KES28.9b) this year.
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