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LG global revenue down 17% in Q2

LG Electronics Q2 2020 financial results have been hit by the impact of the pandemic with consolidated revenue and operating profit declining 17.9% and 24.1% respectively from the same period in 2019.

The LG Home Appliance & Air Solution Company reported revenues of US $4.22 billion in Q2, down 15.5% from Q2 2019, due to softer global demand during the pandemic. Operating income declined 12.5% although the operating profit margin of 12.2% was the highest Q2 result in the history of the LG H&A Company, with increasing consumer interest in healthier living.

The LG Home Entertainment Company’s Q2 revenues and profitability were impacted by lockdown measures including closures of retail stores with sales declining 24.4% and operating income falling 25.9%. In addition to continuing to reduce material costs, the LG HE Company is aggressively controlling marketing investments, increasing the proportion of premium TV products, expanding online sales and further optimising operating efficiencies to bring profitability in line with last year.

There was more positive news with LG Mobile Communications Company posting Q2 sales of US$1.07 billion, a 31.1% increase from Q1. This significant improvement was due in part to the beginning of markets opening after lockdown. The global rollout of LG Velvet in Q3, along with new attractively priced models, is expected to create momentum for LG branded smartphones.

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