LG Electronics Inc. reached an all-time high in annual revenue, even as profitability showed signs of strain from global shipping disruptions and inventory challenges.
The South Korean technology giant reported revenue of 87.74 trillion won ($67.5 billion) for 2024, with operating profit coming in at 3.43 trillion won ($2.6 billion). Fourth-quarter results reflected mounting pressures, as operating profit fell to 146.1 billion won ($112.4 million) on revenue of 22.78 trillion won ($17.5 billion).
The company’s push into business-to-business operations and subscription services helped maintain its growth trajectory, with home appliances expected to generate over 30 trillion won in revenue for the second straight year. LG plans to expand its subscription model beyond existing Asian markets into Thailand and India.
The vehicle components unit, while hitting 10 trillion won in revenue, faces uncertainty amid cooling demand for electric vehicles. Meanwhile, the TV division sees early signs of recovery in premium European markets.
LG’s strategic pivot includes establishing its HVAC business as a standalone unit and strengthening its advertising ecosystem through webOS platform expansion across various devices. The company cited unexpected shipping cost increases and inventory adjustments as key factors affecting recent performance.
