LG Electronics posts record annual revenue in 2021

LG Electronics said it has recorded 74.72 trillion won in revenue and 3.86 trillion won in operating income for the entire year of 2021.

The revenue figure is its highest to date, which the South Korean electronic maker credited to high sales of premium home appliances.

Revenue increased 28.7% from 2020. However, operating income dropped 1.1% over the same time period.

For the fourth quarter alone, LG recorded 21 trillion won in revenue and 677.7 billion won in operating income, an increase of 20.7% and a drop of 21.4%, respectively, from a year ago.

The home appliance business pitched in 6.52 trillion won and 151.71 billion won to the quarterly operating income figure.

LG said the business unit saw growth across all regions, especially in North America and Europe, during the quarter.

The unit’s operating income dropped 44.8% year-on-year however which the company said was caused by an increase in raw material and logistics costs.

LG’s TV business unit, meanwhile, recorded 5 trillion won in revenue and 162.7 billion won in operating income.

The company said it saw expanded sales of OLED TV despite the drop in overall demand for TVs globally.

The vehicle component unit and business-to-business unit both recorded losses however, from the chip shortage caused delays in automobile makers’ production schedules and an increase in logistics cost, respectively.

LG Electronics said it expected uncertainties from COVID-19 outbreaks and increase in raw material costs to persist in 2022, but will focus on offering premium products and supply chain management to secure profitability.