Despite leaving smartphone market, LG’s first quarter profit increased by 39.1%

LG Electronics today announced the final results for the first quarter of 2021. Compared with the same period last year, sales and profits increased by 27.7%/39.1%, respectively.

According to the financial report, LG Electronics finally verified that the company’s operating profit in the first quarter of this year increased by 39.1% year-on-year to 1.5166 trillion won (approximately 8.87 billion yuan). Sales increased by 27.7% year-on-year to 18.8095 trillion won, and both indicators set new highs.

LG Electronics’ mobile business has failed, but fortunately, LG’s home appliance business has maintained good performance. Steam equipment such as dryers, stylers, and dishwashers are selling well.

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It is reported that the sales of the H&A (Home Appliances) business unit are 6.708 trillion won, and the operating profit is 919.9 billion won. Sales and operating profits both hit quarterly highs. The H&A division’s profit for the quarter exceeded 900 billion won, with a profit margin of 13.7%, second only to 13.9% in the first quarter of last year.

LG Electronics’ first-quarter results exceeded market expectations. The company said that although the mobile sector (MC) is losing money, with the gradual recovery of the global economy and the release of suppressed demand under the epidemic, coupled with the increasing time of consumers’ home life, the sales of TVs and high-end home appliances have seen unprecedented growth.

In addition, the HE (Home Entertainment) business unit has sales of 4.82 trillion won and an operating profit of 403.8 billion won. Sales and operating profits increased by 34.9% and 23.9% respectively over the same period last year. The operating profit margin exceeded 10%, and it increased to more than 400 billion won after a lapse of 11 quarters.

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