Visitors flock to LG Electronics’ booth on the opening day of CES 2025 in Las Vegas, Tuesday. AP-Yonhap
By Nam Hyun-woo
LG Electronics reported a record-high annual revenue of 87.74 trillion won ($66.7 billion) for 2024, with an operating profit of 3.43 trillion won, the company said Wednesday.
In the fourth quarter, LG recorded a consolidated revenue of 22.78 trillion won and an operating profit of 146.1 billion won, it added.
Over the past four years, LG’s consolidated revenue has grown at a compound annual growth rate of more than 10 percent. Despite external uncertainties, the company has maintained solid fundamentals.
Strategic shifts in business models, including subscription services and direct-to-consumer (D2C) initiatives, have driven growth beyond its core businesses. The expansion of business-to-business (B2B) operations also contributed significantly to the revenue increase.
Despite various challenges, profitability remained stable on an annual basis. In the second half of last year, unexpected global shipping cost surges and one-time costs for inventory rationalization impacted profitability. However, the overall annual performance showed positive qualitative growth driven by a realignment of the company’s business portfolio.
The home appliance business, a core segment for the company, is expected to surpass 30 trillion won in revenue for the second consecutive year. The strategy of expanding artificial intelligence-powered appliances and volume zone lineups, along with diversifying business models to include subscription and D2C services, has driven solid performance. Growth continues steadily in the B2B sector, including heating, ventilation and air conditioning (HVAC), built-in appliances and component solutions.
LG plans to expand its subscription business to countries such as Thailand and India, in addition to existing markets like Korea, Malaysia and Taiwan. The HVAC business, which holds the largest share in LG’s home appliance B2B sector, will now operate as an independent business unit, aiming to become a global leader in comprehensive air quality solutions.
