LG Electronics Inc. (LG) continued its strong performance in 2021, achieving the highest annual revenue in its history with annual sales of 74.72 trillion Korean won (KRW) ($63.16 billion).
This 28.7% increase over 2020 was primarily attributed to higher sales of premium home appliances and OLED TVs.
The operating profit of 3.86 trillion KRW ($3.27 billion) was essentially unchanged, declining 1% from a year earlier.
LG also reported record sales in the fourth quarter with revenue of 21.01 billion KRW ($17.76 billion), an increase of 20.7% from the same quarter of the prior year.
The operating profit of 677.7 billion KRW ($572.87 million) in the quarter decreased 21.4% compared to the same quarter of the previous year due in large part to factors such as higher costs of raw materials and global logistics.
As challenging business conditions persist in 2022, LG remains on course to strengthen competitiveness by further improving its cost structure and continuing to expand the presence of its premium TVs and appliances in the global market.
LG Home Appliance & Air Solution Company posted another record year with revenue in 2021 of 27.11 billion KRW ($22.92 billion), an increase of 21.7% from the prior year, largely driven by strong performance in new home appliance categories such as hygiene products.
The annual operating profit of 2.22 trillion KRW ($1.88 billion) was 2.9% lower than a year earlier due to higher raw material costs and global logistics.
Record fourth quarter revenue 6.52 billion KRW ($5.52 billion) were 17.7% higher than the same period in 2020.
LG Home Entertainment Company reported 2021 revenue growth of 30.6 % a 17.22 trillion KRW ($14,560 million) with an increase in operating profit of 18.1% from the year before 1.1 trillion KRW ($929.68 million), reflecting LG’s success in responding to increased demand for premium TVs during the coronavirus (COVID-19) pandemic.
Revenue in the quarter 4.99 billion KRW ($4.21 billion) was a 16.4% higher than the fourth quarter of the previous year and 19.2% higher than prior quarter due to growth in demand for premium and large-screen OLED TVs in key regions of Europe and North America.
LG Vehicle component Solutions Company increased revenue by 24% in 2021 from 2020 to 7.19 trillion KRW ($6.08 billion), surpassing the 7 trillion KRW for the first time.
Revenue in the fourth quarter of 1.68 trillion KRW ($1.42 billion) decreased 12.3% from the same quarter of the prior year.
Under the cloud of uncertainty created by the new variant of COVID-19, the global automotive market experienced significant disruption due to a shortage of automotive semiconductors.
LG Business Solutions Company achieved revenue in 2021 of 6.96 billion KRW ($5.89 billion), an increase of 15.8% from the prior year, while higher material costs and supply chain challenges resulted in an annual operating profit of 144.3 billion KRW ($121.98 million).
Fourth quarter revenue increased 14% over the same period in 2020 at 1.72 trillion KRW ($1.46 billion) thanks to strong demand for premium PCs and gaming monitors.
An increase in the cost of global logistics and a slowdown in solar module sales due to increased competition contributed to an operating loss in the fourth quarter of 35.1 billion KRW ($29.67 million).