LG Electronics has reported its highest annual revenue to date, amounting to AUD $96.8 billion, alongside an operating profit of AUD $3.77 billion for the financial year 2024.
The achievement was buoyed by consistent growth in the company's home appliances and vehicle components divisions, each marking nine consecutive years of revenue increases. The Home Entertainment and Business Solutions segments also experienced revenue growth compared to the previous year.
Despite setting a new record for revenue, LG noted a slight decline in operating profit compared to 2023. This was attributed to external challenges such as delayed global demand recovery in the home appliances sector and increased logistics expenses during the second half of the year. Nevertheless, the company maintained a stable profit structure, supported by qualitative growth derived from business portfolio changes and increased sales.
The LG Home Appliance & Air Solution Company recorded revenue of AUD $36.6 billion, maintaining double-digit growth after surpassing AUD $33 billion in annual revenue for the first time two years prior. The operating profit reached AUD $2.25 billion, overcoming logistics-related challenges and marking the first instance since 2021 where operating profit exceeded AUD $2.2 billion.
This growth was largely driven by changes in business models such as home appliance subscriptions and direct-to-consumer sales, with subscription revenue increasing by over 75% compared to the previous year, approaching AUD $2.2 billion. The expansion of the business-to-business segment, including heating, ventilation, and air conditioning systems, also contributed to the results.
The Home Entertainment division achieved revenues of AUD $16.8 billion with operating profits of AUD $348.4 million in 2024. Sales of OLED TVs gained traction in Europe and Asia, spurred by global sporting events, while the webOS-based advertising and content business exceeded an annual revenue of AUD $1.1 billion.
The Vehicle Component Solutions Company reported revenue of AUD $11.7 billion, marking another year of surpassing AUD $11 billion in revenue. The division continued its growth trajectory for the ninth consecutive year despite a temporary dip in electric vehicle demand, supported by a high backlog of orders. However, the operating profit decreased to AUD $127.6 million, attributed primarily to increased costs in new project development and investments into software-defined vehicles.
Within the Business Solutions Company, revenue reached AUD $127.6 million. The growth was driven by a focus on customised commercial displays for various sectors and the sales of premium IT products such as the LG gram. Nonetheless, the company faced operating losses amounting to AUD $212.9 million due to rising raw material prices and heightened market competition.
Looking ahead to 2025, LG plans to enhance synergies between its business units while improving operational efficiency. It will focus on strengthening competitiveness in terms of quality and cost while maintaining a sound profit structure. The Home Appliance Solution Company aims to introduce regionally specialised products and AI applications, hoping to expand its sales efforts beyond Korea, Malaysia, and Taiwan, and into Thailand, India, and other regions.
The Media Entertainment Solution Company plans to emphasise premium product sales and integrate screen-based business operations to improve synergies. Additionally, the Vehicle Solution Company will focus on developing solutions for the entire vehicular experience, securing capabilities for software-defined vehicles and improving profitability through product mix enhancement.
Lastly, the new Eco Solution Company aims to grow LG's HVAC business into a globally competitive entity by leveraging core technologies and developing region-specific solutions. Opportunities include providing comprehensive solutions for various facilities and expanding production locally.
