SEOUL – LG Electronics has unveiled its ambitious plans to reach 100 trillion won ($77 billion) in sales by 2030. The South Korean company also aims to invest around 50 trillion won to achieve its targets. In order to become a global top 10 company in vehicle components, LG plans to double its revenue to 20 trillion won by 2030. Additionally, the company will focus on strengthening service platforms in its home appliance and TV businesses, which generate recurring profits through media subscriptions and rentals.
During a press conference, CEO William Cho explained LG’s strategy, stating, “LG Electronics will transform its business portfolio, increase profits by growing in business-to-business, and transition to a service business.” Cho emphasized that the company will not solely rely on its past success in home appliances. Instead, LG aims to venture into new markets such as electric vehicle charging and digital healthcare.
To achieve its ambitious goals, LG is open to considering inorganic growth opportunities such as joint ventures, mergers, and acquisitions. The company also aims for an operating profit margin of 7% by 2030. In 2022, LG reported consolidated sales of approximately 65 trillion won, excluding affiliate LG Innotek.
LG’s vehicle component division, which includes infotainment systems and lamps, has experienced significant growth. It turned a profit last year and recorded 2.4 trillion won in sales in the first quarter of 2023. LG expects the order backlog of its vehicle component solutions to reach nearly 100 trillion won by the end of the year, indicating a strong revenue stream for the years ahead.
Recently, LG Electronics announced that its second-quarter operating profit increased by 12.7% compared to the previous year, reaching 892.7 billion won. This represents the second-highest profit for the April-June quarter in the company’s history, with the highest profit achieved in 2021.
Credit: The Star : Business Feed
