LG Electronics (LG) has released its first-quarter 2021 consolidated sales of Ksh. 1.8 trillion ($16.90 billion) and operating profit of Ksh. 145 billion ($1.36 billion), the highest quarterly results in the company’s history.
The 8.1% profit is the first-quarter operating profit record for LG, reflecting strong demand for its home appliances and home entertainment products.
Consequently, revenues grew by 27.7%, as profitability soared 39.1% compared to Quarter 1 the previous year. The LG Home Appliance and Air Solution Company generated first-quarter sales of Ksh. 645.2 billion ($6.03 billion), an increase of 23.8% from the previous year. Operating profit at Ksh. 88 billion ($826.39 million) was 22.1 percent higher than the first quarter 2020.
For the second consecutive quarter the appliance business division saw significant growth year-on-year in North America and Europe as well as in South Korea where the rental business is particularly healthy. Profitability was accompanied by stable growth led by strong sales of premium products in North America and Europe. The business unit expects to see continued growth by expanding sale of new products overseas.
The LG Home Entertainment Company recorded sales of Ksh. 385.2 billion (3.60 billion) in the first quarter, an increase of 34.9% from the same period last year. Premium products led by OLED and NanoCell TVs continued to experience strong demand as the pandemic effect continued to be felt across the world.
The LG Mobile Communications Company reported sales in the first quarter of USD 897.18 million (Ksh. 95.9 Billion) with an operating loss of Ksh. 26.9 billion ($251.63 million). Operating loss was down 28% compared to the same period last year due to the lack of new products with LG’s planned exit from the smartphone business at the end of July this year.
The LG Vehicle Component Solutions Company achieved first-quarter sales of Ksh. 181 billion ($1.70 billion), an increase of 43.5% from the same period last year. Operating loss narrowed attributable to the recovery of the automotive sector in North America and Europe, as well as increased revenues from new projects in the e-Powertrain and infotainment sectors and better cost management.