LG Electronics (066570) Q3 2024 earnings summary

Executive summary

• Announced Value-up plans targeting 7% annual growth, 7% operating profit, and a sevenfold EV/EBITDA multiple by 2030, with ROE of at least 10% by 2027.

• Achieved year-over-year revenue growth in Q3 2024, driven by strong appliance sales in emerging markets, increased OLED TV sales, and growth in subscription and webOS platform services.

• Operating profit declined due to higher logistics, LCD panel, and fixed costs from delayed EV component sales.

• Continued to innovate business portfolio, aiming for 100 trillion KRW revenue by 2030 and a shift toward platform-based and B2B businesses.

Financial highlights

• Q3 2024 consolidated sales: KRW 22.18 trillion, up 10.7% year-over-year and 2.2% sequentially.

• Operating profit: KRW 751.9 billion, down from KRW 1,197.2 billion in Q2 2024 and KRW 950.1 billion in Q3 2023.

• Net income: KRW 90.2 billion, a significant decrease from KRW 629.5 billion in Q2 2024 and KRW 485.2 billion in Q3 2023.

• EBITDA for Q3 2024: KRW 1,745.1 billion.

• Cash balance at Q3 end was KRW 7.69 trillion, down KRW 862.2 billion from the previous quarter.

Outlook and guidance

• Q4 environment remains challenging with persistent demand delays and market uncertainties, but global shipping rates are stabilizing.

• Aims for year-over-year revenue growth by expanding home appliance and vehicle component businesses, focusing on high-margin products and operational efficiency.

• Plans to introduce new products tailored to local markets and strengthen productivity to secure profits.