Seoul: LG Electronics Inc. reported a significant 14.8 percent increase in its first-quarter net profit, largely attributed to robust performance in its home appliance sector. The company's net profit reached 1 trillion won (US$680.4 million) for the January-March period, a notable rise from 876.6 billion won in the previous year, as revealed in a regulatory filing.
According to Yonhap News Agency, the operating profit for the first quarter rose 32.9 percent to 1.67 trillion won, up from 1.25 trillion won a year earlier. Sales for the period increased by 4.3 percent, setting a new record of 23.72 trillion won for the first quarter.
The company credited the growth to its home appliance solution division, which focused on subscription services and the premium market segment. Additionally, the vehicle solution business also saw improved profitability from the previous year. Notably, the combined sales of the home appliance and vehicle departments exceeded 10 trillion won for the first time during the January-March period.
Looking ahead, LG Electronics plans to enhance its product lineup and expand its footprint in emerging markets to boost sales. The company also aims to diversify its supply chains and reduce costs to further improve profitability in the second quarter.