South Korea’s technology corporation LG has revealed its third-quarter 2021 consolidated revenues of USD 16.23 billion (KES 1.752 trillion).
This is a 22 percent jump from the same quarter in 2020.
It is also LG’s highest quarterly revenue in the history of the company.
A report from the company states that growth in sales of premium home appliances and entertainment products such as OLED and large screen TVs powered the strong Q3 2021 performance.
Operating profit of USD 466.99 million (KES 50.42 billion) was 49.6 percent lower than the third quarter the previous year, reflecting a provision of USD 415 million (KES 44.8 billion).
The developments appear to have overcome supply chain constraints especially semiconductors, due to the impact of pandemic.
Furthermore, LG reports that profitability also increased significantly during the quarter but was partially offset by a one-time charge. Operating profit of USD 466.99 million (KES 50.42 billion) was 49.6 percent lower than the third quarter the previous year, reflecting a provision of USD 415 million (KES 44.8 billion).
The LG Home Appliance & Air Solution Company
The arm posted third-quarter 2021 revenues of USD 6.1 billion (KES 658.8 billion) with an operating profit of USD 436.51 million (KES 47.08 billion).
Sales increased 14.7 percent from the same quarter last year on the back of strong growth in the Americas and Europe.
The LG Home Entertainment Company
The arm achieved third-quarter 2021 sales of USD 3.61 billion or KES. 389.86 billion, 13.9 percent higher than the same period last year.
Reportedly, this was driven in large part by steady growth in demand for premium products such as OLED and large-screen TVs in the key markets of North America and Europe.
The LG Vehicle Component Solutions Company
This part of the LG corporation recorded revenues of USD 1.5 billion (KES 162 billion).
However, there was an operating loss of USD 464.32 million or KES 47.98 billion related to General Motors’ recall of the Chevy Bolt EV.
It should be remembered that while the car industry saw an increase in demand for automobiles including EVs during the quarter, the global automotive market experienced significant disruption due to the shortage of semiconductors.
The LG Business Solutions Company
This arm saw increased sales in the period under review due to growing demand for information display products, PCs, and monitors as well as the gradual recovery of the B2B segment.
Finally, LG is no longer taking part in the smartphone/mobile business after years of loss-making.
The company originates from the same country like Samsung, which has a larger footing in the smartphone space.
LG was known as the company that veered off ordinary smartphone designs. Its phones were exciting, and sometimes even unorthodox. However, that itself failed to see the arm make enough sales to stay afloat.
In some instances, we could argue that LG did a poor job marketing its phones. But that ship has sailed.
As seen, the company is now focusing on home entertainment products. Its OLED TVs are unmatched and make substantial sales in countries such as the US.
Locally, we know LG as the company that sells superior products such as fridges, microwaves, and air conditioners.
Still, we would have loved to see its phones here because they made the industry entertaining.