LG Electronics set a new first-quarter sales record on the back of strong growth in its core home appliance business and its future growth engine, the vehicle components business, despite economic uncertainty.
LG Electronics announced finalized first-quarter results of 23.7272 trillion won in consolidation sales and 1.6737 trillion won in operating profit. Sales were the highest for any first quarter, and operating profit jumped 32.9% from a year earlier, reflecting solid growth. In particular, combined sales of the Home Appliance Solution (HS) and Vehicle Solution (VS) businesses surpassed 10 trillion won for the first time, demonstrating a balanced portfolio spanning both B2B and B2C.
By business unit, the Home Appliance Solution (HS) division posted sales of 6.9431 trillion won and operating profit of 569.7 billion won. It was the highest quarterly sales on record. Along with strong sales of premium product lines, the home appliance subscription business grew 15% year over year, supporting profitability.
The Vehicle Solution (VS) division recorded sales of 3.0644 trillion won and operating profit of 211.6 billion won, setting new quarterly records for both sales and operating profit. Notably, the operating margin exceeded 6% for the first time since the division was launched, indicating that the vehicle components business has fully established itself as a core business with a stable, order-based revenue structure.
The Media Entertainment Solution (MS) division posted sales of 5.1694 trillion won and operating profit of 371.8 billion won. Through qualitative growth in the webOS platform business and efficient marketing operations, it improved profitability from a year earlier and returned to the black.
The Eco Solution (ES) division achieved sales of 2.8223 trillion won and operating profit of 248.5 billion won. Although consumer sentiment weakened due to the Middle East conflict and labor costs rose, it continues to expand sales of region-specific products such as heat pumps, focusing on the North American and European markets.
LG Electronics plans to continue profitability-based growth in the second quarter. In particular, it will accelerate its push to preempt the AIDC (AI data center) cooling solution market in step with surging demand for AI infrastructure. Its strategy is to integrate the lineup from conventional air-cooling to next-generation liquid cooling to seize market opportunities.
It also plans to strengthen its push into the Global South and further solidify future growth momentum by fostering new businesses such as home robots and robot components.