In This Article:
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Revenue: KRW6,821.3 billion, 2% QoQ growth, 43% YoY growth.
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Operating Loss: KRW80.6 billion, including a one-off expense of over KRW100 billion related to ERP program.
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Area Shipment: Declined 3% QoQ, increased 32% YoY.
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ASP per Square Meter: Increased 6% QoQ to $825.
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Product Revenue Mix: Mobile and others at 36%, IT segment down 33% QoQ, TV panels at 23%, Auto segment at 8%.
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OLED Revenue Share: Increased 16 percentage points YoY, 6 percentage points QoQ, reaching 58%.
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Cash and Cash Equivalents: KRW1,787.7 billion, KRW2,751.1 billion including assets held for sale.
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Debt to Equity Ratio: 297%, Net Debt to Equity Ratio: 156%.
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Capex for the Year: Expected to be mid KRW2 trillion, down by KRW1.1 trillion YoY.
Release Date: October 23, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LG Display Co Ltd (NYSE:LPL) reported a 2% quarter-over-quarter revenue growth, driven by an increase in small panel shipments, including smartphone panels.
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The company achieved a 43% year-over-year revenue growth, attributed to its OLED-centric business portfolio transition.
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Despite market uncertainties, LG Display Co Ltd (NYSE:LPL) improved profitability year-over-year, narrowing operating losses.
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The OLED share of total revenue increased by 16 percentage points year-over-year, reaching 58%, indicating successful business structure upgrades.
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The company is focusing on operational efficiency and cost-saving measures, expecting significant annual labor cost reductions following ERP program implementation.
Negative Points
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LG Display Co Ltd (NYSE:LPL) reported an operating loss of KRW80.6 billion in Q3, impacted by a one-off ERP-related expense exceeding KRW100 billion.
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Area shipment declined by 3% quarter-over-quarter due to lower shipments of midsize IT products like notebooks, PCs, and tablets.
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IT segment revenue decreased by 33% from the previous quarter due to sluggish downstream demand and higher volatilities across product lineups.
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The auto segment revenue accounted for only 8% of the revenue mix, down by 1 percentage point quarter-over-quarter.
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Debt to equity ratio and net debt to equity ratio increased to 297% and 156% respectively, indicating a rise in financial leverage.
Q & A Highlights
Q: What are LG Display's plans for the use of cash proceeds from the sale of the Guangzhou LCD TV plant, and how will it impact financial metrics? A: Sunghyun Kim, CFO, explained that the sale process involves receiving approval from seven countries, with closure expected by Q1 2025. The proceeds will be settled based on the difference in liabilities and working capital from December 2023 to the closing date. The Guangzhou entity turned profitable in 2024, ensuring the deal value won't decline. The cash will stabilize financial metrics and optimize cash levels to reduce financial expenses.