LG Electronics has surpassed 71 trillion won in cumulative sales for the year by the end of the third quarter, indicating it is on track to exceed last year's record annual sales. The company is experiencing growth in new business areas, particularly in business-to-business (B2B) sectors, which is accelerating its goal of achieving 100 trillion won in annual sales by 2030.
On October 7, LG Electronics announced its preliminary consolidated sales for the third quarter reached 23.827 trillion won, with an operating profit of 781.8 billion won. This represents an increase of 8.9% and 13.5%, respectively, compared to the same period last year. Despite external uncertainties such as the Middle East conflict and rising logistics and material costs, the company improved profitability through growth in its core businesses and cost structure enhancements.
For the first three quarters of the year, cumulative sales totaled 71.3807 trillion won, marking the first time it has exceeded 70 trillion won. Cumulative operating profit also surpassed 4 trillion won for the first time, reaching 4.346 trillion won.
The company is likely to set a new record for annual sales this year. Last year, LG Electronics reported approximately 89 trillion won in sales, the highest in its history. By the end of the third quarter, it had achieved about 80% of last year's total sales. If it records over 18 trillion won in sales in the fourth quarter, it will surpass last year's performance.
The goal of reaching 100 trillion won in annual sales is becoming more attainable. To achieve this target this year, LG Electronics would need approximately 28.6 trillion won in sales in the fourth quarter, making the likelihood of reaching this goal limited. However, with the strong potential for record-breaking sales this year and ongoing growth, the company may achieve its 100 trillion won target ahead of schedule by 2030.
Earlier, LG Electronics announced its 'Vision 2030' plan in 2023, outlining its ambition to become a company with 100 trillion won in sales by 2030. The strategy focuses on transitioning from a traditional home appliance-centric business model to fostering B2B, non-hardware, and new business areas as its three main growth drivers.
The B2B sector has become a central pillar for both expanding its scale and generating stable profits. LG Electronics aims to achieve 40 trillion won in B2B sales by 2030, expanding its operations in automotive, heating, ventilation, and air conditioning (HVAC), and digital signage. Unlike business-to-consumer (B2C) sectors, which are sensitive to consumer market fluctuations, B2B can secure stable revenue and profits based on long-term contracts.
The automotive business has continued to grow, supported by stable revenue conversion from its order backlog. The sales of premium products in the vehicle infotainment sector have also increased, establishing it as a cash cow in the B2B field. The HVAC business is seizing new growth opportunities due to rising demand for cooling solutions driven by increased investment in AI data centers. LG Electronics is enhancing its domestic and international production capabilities to meet this demand.
The company's traditional strength in home appliances has also contributed to its performance growth. A dual-track strategy targeting both premium and volume segments, along with the expansion of appliance subscriptions, online sales, and B2B operations, has driven revenue growth. Operational efficiencies in manufacturing and logistics have also helped maintain a solid profit structure.
The media and entertainment division, responsible for the TV business, has seen growth thanks to increased sales of premium products like OLED TVs and expansion in emerging markets. The growth of the webOS platform, along with a higher proportion of premium products and marketing cost efficiencies, has allowed the division to maintain profitability.
* This article has been translated by AI.
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