LG Electronics Inc. provided preliminary information about its profits for Q4 and all of 2023. Thus, the company reported annual consolidated revenue of 84 trillion Korean won (about $62.8 billion), the third year in a row to achieve the highest annual revenue, and annual operating profit of 3.5 trillion won (over $2.6 billion). The figures show a steady performance, despite the delay in the recovery of demand after the economic downturn and increased competition.
The historically high annual revenue figure can be attributed to the robustness of the company’s core business and growth in the B2B sectors. In particular, the compounded annual growth rate (CAGR) of LG’s revenue over the past three years is more than 13%. In addition, the annual operating profit showed high indicators – in 2023 it reached the same level as in 2022.
A leading role was played by strategic efforts to expand the business portfolio with the help of the B2B sector. Business model innovations such as the diversification of hardware-based businesses into platform-based services have contributed.
According to forecasts, the business of solutions for household appliances and ventilation systems of LG will reach an annual profit of 30 trillion won (over $22.4 billion). B2B growth in HVAC, components and built-in appliances also contributed to growth. In the future, the techno giant plans to focus on strengthening the competitiveness of products and production. The company will also accelerate work on the development of smart home solutions and increase the number of household appliances with built-in OS.
Annual revenue from the production of automotive components is expected to exceed 10 trillion won (about $7.48 billion) within 10 years of its establishment. From this year, LG will be more active in the direction of software-defined vehicles to increase volumes and plans to improve the in-car experience.
Despite challenges in the European market, the home entertainment business has seen significant growth in webOS content and services. In 2024, the expansion of the webOS ecosystem should go beyond TVs and include smart monitors, car infotainment systems and other industries. Also, LG plans to strengthen the model range of premium OLED and QNED TVs.
The business solutions company will focus on the early commercialization of electric vehicle charging and robotics. As a leader in LG’s B2B business, this segment aims to accelerate the transition from the supply of individual products to the integration and provision of related solutions. A significant share of new enterprises appeared in the organization, so the company plans investments for future preparatory work.
These figures are indicative of consolidated earnings, and the official announcement of confirmed results, including 2023 net income and performance management for each company, is scheduled for late January.
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