In This Article:
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Consolidated Sales: KRW22.76 trillion in Q4 2024.
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Operating Profit: KRW135.4 billion in Q4 2024.
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Net Loss: KRW713.7 billion in Q4 2024.
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Cash Flow from Operating Activities: KRW1.86 trillion in Q4 2024.
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Cash Flow from Investment Activities: Negative KRW1.24 trillion in Q4 2024.
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Net Cash Flow: KRW807.3 billion in Q4 2024.
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Cash Balance: KRW7.57 trillion at the end of Q4 2024.
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H&A Sales: KRW7.41 trillion in Q4 2024.
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H&A Operating Loss: KRW117.3 billion in Q4 2024.
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HE Sales: KRW4.37 trillion in Q4 2024.
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HE Operating Profit: KRW7.3 billion in Q4 2024.
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VS Sales: KRW2.65 trillion in Q4 2024.
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VS Operating Loss: KRW20 billion in Q4 2024.
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BS Sales: KRW1.24 trillion in Q4 2024.
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BS Operating Loss: KRW123.1 billion in Q4 2024.
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Total Assets: KRW65.6 trillion at the end of Q4 2024.
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Total Liabilities: KRW40.4 trillion at the end of Q4 2024.
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Total Equity: KRW25.2 trillion at the end of Q4 2024.
Release Date: January 23, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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LG Electronics Inc (FRA:LGLG) achieved solid growth in sales and stable profit in 2024 despite internal and external challenges.
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The subscription and webOS businesses contributed significantly to offsetting rising expenses, enhancing business performance.
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The company maintained a healthy financial condition with a strong asset base and leverage ratios.
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The Home Entertainment business saw year-over-year sales growth, driven by higher sales in Europe and Asia and the expansion of webOS-based advertising.
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LG Electronics Inc (FRA:LGLG) was recognized for its ESG activities, achieving high scores in industry evaluations and maintaining inclusion in the Dow Jones Sustainability World Index for 13 consecutive years.
Negative Points
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LG Electronics Inc (FRA:LGLG) faced profitability challenges in Q4 2024 due to soaring logistics costs and fluctuating exchange rates.
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The Home Appliance business recorded an operating loss in Q4 2024, impacted by rising logistics costs and delayed demand recovery.
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The Vehicle Component Solutions business experienced a decline in operating profit due to higher investment in development and stagnant EV demand.
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The Information Display business faced revenue declines due to intensified competition and rising logistics and raw material costs.
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The company posted a net loss of KRW713.7 billion in Q4 2024, reflecting financial income and expense, equity method gain and loss, and other non-operating factors.
Q & A Highlights
Q: What are the potential risks from the Trump administration's tariff policies, and how will LG Electronics counter these risks? A: The Trump administration has not yet detailed the tariffs, but high tariffs on countries with large US trade deficits, including Korea, are likely. LG Electronics will optimize its value chain and develop measures against various scenarios to mitigate potential consequences. This includes expanding swing production and shifting global production volumes to mitigate risks. (Chang Tae Kim, CFO)