Last year, LG announced it was shutting down its smartphones’ unit. This year, the company has recorded its best quarterly revenue in the company’s history. The company says the operating profit of KES 180.54 billion was positively impacted by royalty income, partially offset by a one-time workforce restructuring cost.
The results are based on IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2022.
Compared with the first quarter a year ago, revenues grew by 18.5 percent and profitability soared by 6.4 percent, reflecting a very strong demand for LG home appliances as consumers around the world continue their focus on healthier living, energy efficiency and home upgrades. The vehicle component business unit’s sales increased driven by higher demand for auto parts as a result of a proactive and pre-emptive response to shortages of automotive semiconductors.
The LG Home Appliance & Air Solution Company generated first-quarter sales of Ksh 766.13 billion with an operating profit of Ksh 43.01 billion. Sales increased 18.8 per cent from the same quarter last year, recording the business unit’s highest quarterly revenue. Stable growth was driven largely by strong performance in premium appliances and new categories such as hygiene products applied with steam technology. The appliance business expects to see continued growth by expanding overseas sales in new appliance categories.
The LG Home Entertainment Company recorded sales of Ksh 391.18 billion with an operating profit of Ksh 18.1 billion. Sales increased 1.4 per cent from the same period a year ago driven by continued demand for premium products including OLED and large-screen TVs in Europe and North America. The business unit expects continued growth by expanding sales of premium TVs including LG OLED TVs, QNED TVs and large-screen TVs.
The LG Vehicle Component Solutions Company achieved first-quarter sales of Ksh 180.54 billion. The sales increase of 8.5 per cent from the same period last year reflected a preemptive response to shortages of automotive semiconductors. The business unit’s first-quarter operating loss narrowed to Ksh. 605. 28 million, and the company has implemented better cost management to further improve profitability.
The LG Business Solutions Company saw improved first-quarter revenues of Ksh. 193.27 billion, an increase of 23.7 per cent from a year ago largely on the back of continued demand for products such as monitors and PC products at the beginning of the academic season and recovery of the B2B segment, while product competitiveness and operational efficiencies also improved.