LG Electronics has announced third quarter 2021 total revenues of Ksh 1.752 trillion (USD 16.23 billion). This is a 22% increase from revenues registered in a similar period last year, and the highest quarterly revenue in the history of the company.
The strong Q3 performance has been attributed to growth in sales of premium home appliances and entertainment products such as OLED and large screen TVs.
Profitability also increased significantly during the quarter but was partially offset by a one-time charge. Operating profit of Ksh. 50.42 billion (USD 466.99 million), a 49.6% decline from the third quarter profit posted last year.
The LG Home Appliance and Air Solution Company posted third-quarter 2021 revenues of Ksh. 658.8 billion (USD 6.1 billion) with operating profit of USD 436.51 million (Ksh 47.08 billion). Sales increased 14.7% from the same quarter last year on the back of strong growth in the Americas and Europe.
The LG Home Entertainment Company recorded sales of Ksh. 389.86 billion (USD 3.61 billion), 13.9% higher than the same period last year. This growth has been attributed to steady growth in demand for premium products such as OLED and large-screen TVs in the key markets of North America and Europe.
On the flipside, operating profit declined compared to the same period last year due to an increase in component prices such as LCD panels.
The LG Vehicle Component Solutions Company recorded revenues of Ksh. 162 billion (USD 1.5 billion (Ksh. 162 billion). However, there was an operating loss of USD 464.32 million or Ksh. 47.98 billion related to General Motors’ recall of the Chevy Bolt EV.
Although the industry saw an increase in demand for automobiles including EVs during the quarter, the global automotive market experienced significant disruption due to the shortage of semiconductors. LG now says it will focus on strengthening its global supply chain through greater collaboration with auto OEMs and other component providers.
The LG Business Solutions Company increased sales in the period under review due to growing demand for information display products, PCs and monitors as well as the gradual recovery of the B2B segment. Higher prices of major components including LCD panels, semiconductors and solar wafers coupled with an increase in global logistics costs had an impact on operating profits. The company plans to grow its share of the recovering B2B segment while improving product competitiveness and operational efficiencies.