LG’s home appliance business hits record profit in first quarter despite economic downturn

LG Electronics’s home appliance business unit recorded its highest operating profit to date for the first quarter this year despite the global economic downturn.

The South Korean electronics maker said on Thursday that it recorded 20.41 trillion won in revenue and 1.49 trillion won in operating profit for the first quarter of 2023.

Its home appliance business, which sells refrigerators, washing machines and air conditioners, contributed 1.02 trillion won in operating profit.

It is the business unit’s highest operating profit figure to date and comes at a time when demand for consumer electronics has soured due to the global economic downturn.

The South Korean company said it offered environmentally friendly products to Europe and developed markets in response to increased regulations to achieve growth.

LG credited its war room task force that aimed to change how it operates to the high profit amid uncertainties.

The South Korean company also added that its business-to-business operations were seeing revenue growth.

Its notebook, such as LG Gram, showed high sales to schools during the quarter while demand for its components increased from car makers as they continue to shift towards electric cars, LG Electronics said.

Meanwhile, the company’s TV business contributed 0.2 trillion won in operating profit. LG Electronics said demand for TVs was sluggish during the quarter due to geopolitical reasons but it focused on offering content and services through its webOS platform to make the business unit profitable.