Q4 2024 LG Electronics Inc Earnings Call Transcript
Key Points
- LG Electronics Inc (FRA:LGLG) achieved solid growth in sales and stable profit in 2024 despite internal and external challenges.
- The subscription and webOS businesses contributed significantly to offsetting rising expenses, enhancing business performance.
- The company maintained a healthy financial condition with a strong asset base and leverage ratios.
- The Home Entertainment business saw year-over-year sales growth, driven by higher sales in Europe and Asia and the expansion of webOS-based advertising.
- LG Electronics Inc (FRA:LGLG) was recognized for its ESG activities, achieving high scores in industry evaluations and maintaining inclusion in the Dow Jones Sustainability World Index for 13 consecutive years.
- LG Electronics Inc (FRA:LGLG) faced profitability challenges in Q4 2024 due to soaring logistics costs and fluctuating exchange rates.
- The Home Appliance business recorded an operating loss in Q4 2024, impacted by rising logistics costs and delayed demand recovery.
- The Vehicle Component Solutions business experienced a decline in operating profit due to higher investment in development and stagnant EV demand.
- The Information Display business faced revenue declines due to intensified competition and rising logistics and raw material costs.
- The company posted a net loss of KRW713.7 billion in Q4 2024, reflecting financial income and expense, equity method gain and loss, and other non-operating factors.
Good afternoon. Welcome to LG Electronics quarterly earnings conference call. This conference call will start with a presentation on the earnings results followed by a Q&A session. (Operator Instructions) I'll now turn the call over to the first speaker.
(interpreted) Good afternoon. My name is Wonjae Park from Investor Relations. Thank you for joining our earnings call for the fourth quarter of 2024. With me are CFO and EVP of LG Electronics, Chang Tae Kim; SVP of HS Company I-Kueon Kim; SVP of MS Company, Sang Ho Park; VP of VS Company, Ju Yong Kim; VP of former BS Company, Dong Cheol Lee; VP of Corporate Business Management, Choong Hyun Park; VP of Accounting, Hong Su Lee; VP of Finance, Young Kyoon Kim; and Head of ESG Strategy, Sung Min Hong.
Here is today's presentation agenda. First, our CFO will outline the overall performance of the fourth quarter and the outlook for 2025. Then I'll present the Q4 results and financial highlights. Subsequently, each business will take turns to deliver
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