Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = LG Electronics announced preliminary results of consolidated sales for the first quarter of 2024 of KRW 21.0959 trillion and operating profit of KRW 1.3329 trillion.

Sales reached an all-time high in the first quarter.

The introduction of new business methods such as subscriptions and the expansion of B2B(business-to-business) business, where there are significant opportunities for further growth, are driving forces to overcome uncertainties such as the delayed recovery of market demand.

Operating profit also continued to be solidly profitable despite the impact of increased market competition. Operating profit in the first quarter exceeded KRW 1 trillion for the fifth consecutive year since 2020. It is positive that the content and service businesses and direct-to-consumer(D2C) sales, which utilize hundreds of millions of products worldwide as platforms, are driving qualitative growth and increasing their contribution to the company's operating profit.

The Home Appliances business, which is a cash cow, grew as premium new products launched in the first quarter, including the All New Styler, a garment care machine, WashCombo, an all-in-one washer-dryer, and WashTower, a washer-dryer that combines the advantages of all-in-one and large capacity, were well received by the market.

Targeting volume zones by expanding the lineup downward in accordance with regional characteristics and changes in demand in overseas markets is also yielding good results. The expansion of B2B HVAC (cooling, heating and air conditioning), built-in, and parts solutions is also continuing.

LG Electronics plans to further accelerate the paradigm shift in home appliances with a subscription business that allows customers to choose the appliances they want and services such as product management in line with their lifestyle.

In addition, in the era of AI home appliances, it is also promoting the evolution of Affectionate Intelligence home appliances to provide a more differentiated customer experience by caring and empathizing with customers beyond simple AI.

In the electronics business, the order backlog secured over the years is leading to gradual sales growth. The order backlog is expected to exceed KRW 100 trillion in the first half of this year, up from mid-90 trillion at the end of last year.

The automotive infotainment business, which accounts for the largest portion of sales, plans to expand differentiated products this year and focus on securing software capabilities.

By Soon-ki Lee(s8789@nspna.com) and Bok-hyun Lee(bhlee2016@nspna.com)

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