LG Display returned to profit in the third quarter on the back of higher shipments of organic light-emitting diode (OLED) panels. Thanks to new product launches by key clients including Apple, shipments of high-margin mobile OLED panels rose sharply. With shipments of OLEDs for mobile devices and tablets increasing and cost reductions from restructuring taking hold, the company is expected to post an annual operating profit for the first time in four years.
On the 30th, G Display said in a filing that third-quarter revenue was 6.957 trillion won, with operating profit of 431 billion won. An LG Display official said, "Revenue grew 25% from the previous quarter as OLED panel shipments expanded across all product categories," adding, "The share of OLED products in total revenue reached a record 65%, helped by the seasonal peak and the launch of new small and mid-sized OLED panels." The sales mix by product (based on revenue) was 16% for TV panels, 37% for IT panels (monitors, notebook PCs, tablets, etc.), 39% for mobile panels and other products, and 8% for automotive panels.
There is an outlook that the company will achieve an annual return to profit this year for the first time in four years, driven by improved profitability from higher OLED shipments and cost reductions. An LG Display official said, "Cumulative revenue through the third quarter was 18.6092 trillion won, with cumulative operating profit of 348.5 billion won. This makes an annual return to profit in four years all but certain," adding, "Although cumulative revenue fell 1% year over year due to the end of the liquid crystal display (LCD) TV business, cumulative operating results improved by about 1 trillion won, making the transition to an OLED-centered business structure visible in the results."
LG Display booked operating losses for three straight years from 2022 to 2024. Demand plunged for large OLEDs and LCDs for TVs and IT (notebooks and monitors), which had accounted for a significant share of revenue. As LCD panel prices slumped under low-price competition from China, the company announced its exit from that business, but losses piled up during restructuring. In its third-quarter earnings conference call, LG Display said, "Last year as well, we narrowed our annual loss by about 2 trillion won compared with 2023. There is still the fourth quarter left this year, but we expect to achieve a significant improvement in profitability that exceeds the 1 trillion won level compared with last year," adding, "Next year, we will also deliver business results improved from this year."
LG Display said it plans to strengthen profitability by expanding the revenue share of premium products such as OLED and focusing on an efficient operating system. Kim Sung-hyeon, LG Display chief financial officer (CFO), said, "Despite continued uncertainty and volatility in the external environment over the past few years, we have enhanced execution on strategic tasks and expanded business results each year through focused operations," adding, "An annual profitability turnaround for this year has come into view, and based on our strengthened business fundamentals and operating capabilities, we will further reinforce our profit structure and continue to expand our business performance."