LG Electronics Inc. (LG) has POSTED a Kes153.15 billion profit for the first quarter of 2023.

This is the third-highest first-quarter profitability in the company’s history.

Revenue for the same period is reported at Kes2.08 trillion, the second-highest first-quarter revenue in the company’s history.

The growth is attributed to improved business structure and operational efficiency despite the profitability being impacted by challenging global economic conditions.

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LG Electronics Inc CEO William Cho said the company’s business structure improved with its continuously expanding B2B segment and non-hardware business areas, such as content and services, which are achieving significant growth.

On the other hand, LG Home Appliance & Air Solution Company recorded the highest revenues of Kes819.04 billion with an operating profit of Kes104.17 billion.

The unit posted its highest first-quarter revenues, with operating profit exceeding Kes102.12 billion in sales for the first time, attributed to the rapid expansion of the B2B segment, fueled by sales of energy-efficient heat pump-enabled products as energy storage systems.

“The company will focus on maintaining the competitiveness of its premium appliances as well as strengthening its mass-tier appliance lineup in response to the polarisation of market demand, along with managing cost structure to enhance profitability,” said Cho.

By concentrating on the developing B2B market and accelerating the service market, which includes the rental and care service business, which has experienced an average annual growth rate of 30% in South Korea over the last five years, the appliance industry anticipates further expansion.

With first-quarter sales of Kes343.14 billion and an operating profit of Kes20.46 billion, the LG Home Entertainment Company effectively managed operational costs through improved demand forecasting.