LG Electronics opens the era of ‘3 trillion’ annual operating profit…’Quarterly maximum’ in 4Q

For the first time ever, LG Electronics’ annual operating profit exceeded 3 trillion won. This is thanks to the increase in demand for household appliances in’Corona 19′ until the end of the year. In the fourth quarter of last year, overall sales and operating profit were the highest ever recorded in the fourth quarter.

On the 8th, LG Electronics announced that its sales and operating profit in the fourth quarter of last year recorded 18,782.6 billion won and 647 billion won, respectively. Compared to the same period of the previous year, sales increased by 16.9% and operating profit by 535.6%. Sales were record-high in the quarter, and operating profit reached the highest in the fourth quarter.

In the fourth quarter, LG Electronics’ earnings were usually relatively poor. LGE’s performance showed good performance in the first half of the year, but in the second half of the year, the pattern of following the so-called “up and down” has continued, but it is analyzed that last year, the home appliance industry faced an unprecedented specialty due to Corona 19, leading to a new record in performance.

Thanks to this, LG Electronics, which achieved evenly favorable performance in the first half and second half of last year, is writing a new history with annual operating profit exceeding 3 trillion won for the first time in history. Last year, its annual sales amounted to 63,2638 billion won, and its operating profit reached 3,1918 billion won, which exceeded 3 trillion won. Sales and operating profit were the highest, respectively, up 1.5% and 31% compared to the previous year.

Last year, LG Electronics’ performance can be seen as being led by the H&A sector in the face of COVID-19. As the popularity of new home appliances such as stylers, dryers, and dishwashers in the traditional white goods exploded around the demand for Zipcock, the securities industry predicted that the H&A business alone would have recorded sales of over 22 trillion won and operating profit of 2.4 trillion won. have.

The TV business, centered on OLED, also seems to have seen significant growth last year. In 2019 alone, the HE division, which is in charge of the TV business, had an annual operating profit of only 700 billion won, but there are forecasts that it would have made a profit of nearly 1 trillion won this year. Like home appliances, demand for Zipcock caused by Corona 19 is analyzed as a factor that boosted sales of premium TVs such as OLED.

The provisional results announced on this day are estimates based on the Korean International Accounting Standards (K-IFRS). LG Electronics’ consolidated net profit and earnings by division are planned to be announced at the earnings presentation scheduled at the end of this month.