What you need to know
- LG Electronics has posted its 2021 financial results.
- The company achieved its highest full-year revenue in 2021, thanks to strong demand for home appliances and OLED TVs.
- LG's Q4 revenue increased 20.7% YoY, although operating profit was down 21.4%.
LG, which quit the smartphone business last year, has announced that it achieved its highest annual revenue in 2021, with full-year sales reaching KRW 74.72 trillion (about $63.16 billion). That's an increase of 28.7% over 2020. LG has attributed its strong performance to robust sales of OLED TVs and premium home appliances.
LG also witnessed record sales in the fourth quarter of the year, with consolidated revenue rising 20.7% over the same period last year to KRW 21.01 trillion (about $17.76 billion). Operating profit, however, declined 21.4% over Q4 2020. LG says this was due to higher raw material global logistics costs.
The company's home entertainment division saw its revenue grow 30.6% in 2021 to reach KRW 17.22 trillion (about $14.56 billion). Despite the global pandemic, LG was successful in cashing in on the higher demand for premium smart TVs in Europe, North America, and other regions. This doesn't come as a surprise, since LG makes some of the best smart TVs on the market.
LG's home appliance and air solution business also had a "record-setting year" with revenues of KRW 27.11 trillion (about $22.92 billion). The growth in revenue was driven by new appliance categories like hygiene products.
The LG business solutions company achieved full-year revenue of KRW 6.96 trillion (about $5.89 billion), an increase of 15.8% over the previous year. Its fourth-quarter revenue grew 14% over the same period in 2020 to KRW 1.72 trillion ($1.46 billion) on strong demand for gaming monitors and high-end PCs.
While global business conditions are likely to remain highly challenging in 2022, LG plans to boost its competitiveness by making further improvements to its cost structure and expanding the "presence of its premium appliances and TVs in the global market."
