SEOUL, South Korea - LG Electronics reported steady financial results in 2023, posting its third consecutive year of record annual revenue of $64 billion despite an economic slowdown that dampened demand.
Operating profit remained resilient at $2.7 billion, approaching pre-pandemic levels when demand surged.
LG benefited from solid core businesses and growth in business-to-business sectors. Revenue has grown at a compound annual rate of 13% over the past three years.
Effective management under challenging conditions enabled a comparable operating profit year-on-year, an outlier in the industry.
Strategic initiatives such as identifying high-growth opportunities early and evolving hardware-focused businesses into service platforms contributed to stability.
Home Appliances and Air Solutions sales likely exceeded $22.8 billion.
Market maneuvers to address demand polarization generated volume while maintaining premium market leadership.
Expanding businesses such as HVAC and built-in appliances also drove growth.
The automotive component solutions business may exceed $7.6 billion in sales within a decade, becoming a core LG business.
Production facilities have been operating at over 100% capacity since last year. Software capabilities will be critical amid the software-defined vehicle trend.
Despite European headwinds, the entertainment business saw significant webOS content and services expansion.
The webOS ecosystem now extends beyond TVs to areas such as car infotainment. LG is strengthening both its OLED and QNED TV lineups.
The B2B solutions business focuses on early commercialization in EV charging and robotics.
The shift from product supply to integrated solutions will be essential.
With newer firms accounting for a large share, profits will be reinvested rather than maximized in the short term.
LG has yet to announce its final results for 2023, including net income.
The preliminary consolidated results here are in line with Korean accounting standards and serve to update investors. Official confirmed figures will be released later this month.