According to Yonhap News Agency, LG Electronics' preliminary verification data showed that the company's full-year operating profit for 2024, calculated based on consolidated financial statements, decreased by 6.1% year-on-year to 3.43 trillion won (about 17.35 billion yuan). Sales increased by 6.7% year-on-year to 87.74 trillion won, setting a new full-year record after two years. LG Electronics reportedly said that the company will launch a paid subscription service for home appliances in 2024 and adopt a D2C (business-to-consumer) marketing model, which will become the driving force for the company to break the boundaries of its main business. Not only that, the B2B (business-to-business) business has also continued to grow, contributing to the company's sales increase. As for the reasons for the decrease in operating profit, the report mentioned that LG Electronics stated that global shipping costs suddenly rose sharply in the second half of 2024, and the company also incurred some one-time costs to promote inventory management optimization in order to reduce the uncertainty of the business environment. The report also mentioned that in the fourth quarter of 2024, LG Electronics' operating profit decreased by 53.3% year-on-year to 146.1 billion won, 42.4% lower than the market expectation (253.7 billion won) calculated by Infomax, a financial information subsidiary of Yonhap News Agency. During the same period, sales increased by 0.2% year-on-year to 22.78 trillion won. |
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