South Korea-based tech giant LG has announced its second-quarter 2023 earning results. The company reported consolidated revenue of $15.6 billion with an operating profit of $579 million. LG recorded the highest second-quarter revenues in the company’s history. The company claimed that the record-breaking second-quarter results were due to its strategy to drive continuous growth while strengthening its business competitiveness
The revenue also reflects the company’s actions to improve its business structure by pursuing new platform-based service businesses and expanding the business-to-business (B2B) segments. However, the operating profit was 6.3% lower than the second quarter of 2022.
The company plans to drive profitability improvements further by optimising efficiencies and by meeting market demands through enhanced demand forecasting and manufacturing competitiveness. LG also plans to strengthen its online brand store and direct-to-consumer businesses.
LG’s Home Appliance & Air Solution uni generated second-quarter revenue of $6.2 billion and an operating profit of $468 million. Despite intensified market conditions, the business unit recorded strong profitability on the back of increased sales of high-demand products such as air conditioners and energy-efficient heat pump-enabled products. The operating profit increased by 40% from the previous year, reflecting efficient cost structure management.
LG also plans to leverage its high-efficiency innovations including heat pumps and ESS as demand for green technologies grows in Europe, North America and other parts of the world. At the same time, the company sees the electrification trend as an opportunity for future growth in theHVAC business. In the third quarter, the company will launch new LG ThinQ UP 2.0 home appliances featuring personalisation features, subscriptions and services. The company has also promised to expand certain mass-tier appliance lineups in response to market changes. LG is also aiming to lead a paradigm shift in the home appliance industry by combining service-based business models with differentiated product competitiveness while continuing efforts to increase efficiencies in production, purchasing and logistics for stable profitability.
