Q3 2024 LG Electronics Inc Earnings Call Transcript
Key Points
- LG Electronics Inc (FRA:LGLG) reported year-over-year revenue growth in Q3 2024, driven by increased appliance sales in emerging markets and a rise in OLED TV sales.
- The company has set ambitious mid- to long-term goals, including achieving a 7% average annual growth rate and a sevenfold increase in EV EBITDA multiple by 2030.
- LG Electronics Inc (FRA:LGLG) is focusing on expanding its platform into services and B2B businesses, aiming to increase their contribution to 52% of total revenue by 2030.
- The company has introduced a minimum dividend of KRW1,000 per common share per year, along with a semiannual dividend scheme, enhancing shareholder returns.
- LG Electronics Inc (FRA:LGLG) has been recognized for its eco-friendly products, receiving multiple awards for energy efficiency and sustainability.
- Operating profit declined in Q3 2024 due to rising logistics costs, LCD panel prices, and fixed costs associated with delayed EV component sales.
- The business environment remains challenging with ongoing global macroeconomic uncertainties and geopolitical tensions affecting market demand.
- The company's cash flow from investment activities was negative KRW754.1 billion, resulting in a net cash flow of negative KRW727.5 billion for Q3 2024.
- The vehicle component solutions business experienced a decrease in operating profit year over year, impacted by reduced sales and increased R&D costs.
- The business solutions segment faced a deeper deficit due to competition-triggered drops in average selling prices and rising logistics and material costs.
Good afternoon. My is Wonjae Park from Investor Relations. Thank you for joining our earnings call for the third quarter of 2024. With me are CFO and EVP of LG Electronics, Chang-Tae Kim; SVP of Global Business Management, Sang Ho Park; VP of Home Appliance and Air Solution, I-Kueon Kim; VP of Home Entertainment, Jeong-hee Lee; VP of Vehicle Component Solutions, Ju Yong Kim; VP of Business Solutions, Dong Cheol Lee; VP of Corporate Business Management, Choong Hyun Park; VP of Accounting Division, Hong Su Lee; Head of Finance, Young Kyoon Kim; and Head of ESG Strategy, Sung Min Hong.
Here's today's presentation agenda. First, our CFO will outline our corporate value-up programs, which were announced on October 22 as well as the result of the third quarter and the outlook for the fourth quarter, then I'll present financial highlights. Subsequently, each division will take turn to deliver its business results and outlook. And finally, we will conclude with an overview of our ESG activities and achievements.
Please note that all
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