Seoul, South Korea – LG Electronics (LG) has released its final earnings report for 2024, revealing a 6.4% year-on-year decrease in operating profit, totaling 3.4197 trillion Korean won (approximately 17.35 billion RMB). Despite this decline, the company achieved a record-breaking 87.7282 trillion Korean won in sales, a 6.6% increase compared to the previous year, marking a new high after two years.
The report, released on January 23rd, highlights a mixed performance across LG’s various business divisions.
The Home Appliance & Air Solution (H&A) division demonstrated significant growth, with sales reaching 33.2033 trillion Korean won, a double-digit increase. The division’s operating profit also rebounded strongly, exceeding 2 trillion Korean won for the first time in three years, reaching 2.0446 trillion Korean won.
However, the Home Entertainment (HE) division, responsible for LG’s television business, reported sales of 15.2291 trillion Korean won and an operating profit of 315.9 billion Korean won.
While the report indicates strong sales figures, the decrease in operating profit suggests potential challenges for LG, such as increased competition, rising raw material costs, or shifts in consumer demand. Further analysis of the company’s detailed financial statements and strategic outlook will be necessary to understand the underlying factors contributing to this mixed performance.
Conclusion:
LG Electronics’ 2024 earnings report presents a complex picture. While achieving record sales is a positive indicator of the company’s market presence and product appeal, the decline in operating profit raises questions about profitability and future growth strategies. The strong performance of the H&A division provides a bright spot, while the HE division’s results warrant further scrutiny. Moving forward, LG will need to navigate evolving market dynamics and address potential cost pressures to ensure sustained profitability and maintain its competitive edge.
References:
- Yonhap News Agency. (2025, January 23). LG电子最终核实2024年营业利润同比减6.4% [LG Electronics Finalizes 2024 Operating Profit Down 6.4% YoY]. Retrieved from [Insert URL of the Yonhap News Article here].
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