LG Electronics Inc. (LG) continued its strong performance in 2021, reaching the highest annual revenues in its history with full-year sales of KRW 74.72 trillion ($ 63.16 billion). This 28.7% growth compared to 2020 is mainly attributable to sales of premium appliances and OLED TVs. Operating profit of KRW 3.86 trillion ($ 3.27 billion) remained broadly unchanged, down 1% from the previous year.
LG posted record sales in the fourth quarter, with revenues of KRW 21.01 trillion ($ 17.76 billion) – a growth of 20.7% over the same quarter a year earlier. Operating profit of KRW 677.7 billion ($ 572.87 million) for the quarter was down 21.4% from the same quarter a year earlier, largely due to factors such as rising costs of raw materials and logistics globally. As these tough business conditions continue into 2022, LG will continue to strengthen its competitiveness by further improving its cost structure and further expanding the presence of its premium home appliances and TVs in the global market.
LG Home Appliace & Air Solution Company recorded another record year with 2021 sales of KRW 27.11 trillion (USD 22.92 billion), an increase of 21.7% over the previous year, mainly driven by the strong performance of new categories of household appliances such as products for the hygiene. Annual operating profit of KRW 2.22 trillion ($ 1.88 billion) was 2.9% lower than the previous year due to higher costs for raw materials and logistics globally. Record fourth quarter revenue of KRW 6.52 trillion ($ 5.52 billion) was 17.7% higher than the same period in 2020.
LG Home Entertainment Company recorded revenue growth of 30.6% in 2021 equal to KRW 17.22 trillion ($ 14.56 billion) with operating profit up 18.1% over the previous year, equal to KRW 1.1 trillion ($ 929.68 million), demonstrating LG’s success in responding to the increased demand for premium TVs during the pandemic. Revenue for the quarter of KRW 4.99 trillion ($ 4.21 billion) was 16.4% higher than the previous year’s fourth quarter and 19.2% higher than the previous quarter, thanks to growth in business. demand for OLEDs and large-scale storage in key regions of Europe and North America.
LG Vehicle component Solutions Company increased revenues by 24% in 2021 compared to 2020, amounting to KRW 7.19 trillion ($ 6.08 billion), surpassing KRW 7 trillion for the first time. In the fourth quarter, revenues of KRW 1.68 trillion ($ 1.42 billion) decreased 12.3% compared to the same quarter a year earlier. Under the cloud of uncertainty created by the new COVID-19 variant, the global automotive market has experienced a significant disruption due to the shortage of semiconductors.
LG Business Solutions Company obtained in 2021 sales of KRW 6.96 trillion ($ 5.89 billion), an increase of 15.8% over the previous year, while higher material costs and supply chain challenges led to an annual operating profit of KRW 144.3 billion ($ 121.98 million). Fourth quarter revenue increased 14% over the same period in 2020, amounting to KRW 1.72 trillion ($ 1.46 billion) thanks to strong demand for premium gaming PCs and monitors. Rising global logistics costs and slowing solar module sales due to increased competition contributed to a fourth quarter operating loss of KRW 35.1 billion ($ 29.67 million).
Fourth Quarter 2021 Exchange Rates Explanation
LG Electronics’ unaudited quarterly earnings results are based on International Financial Reporting Standards (IFRS) for the quarter ending December 31, 2021. Amounts in Korean won (KRW) are converted to US dollars (USD) at the average rate for the three-month period of the corresponding quarter – KRW 1,182.99 per USD.