LG Corp (003550) Q2 2024 earnings summary

Executive summary

• Consolidated revenue for 1H24 decreased 2.8% year-over-year to KRW 3.45T, mainly due to lower equity method gains and reduced operating profit from subsidiaries.

• Consolidated operating profit for 1H24 declined 23.7% year-over-year to KRW 0.73T, primarily from lower contributions by LG Chem and other affiliates.

• Standalone revenue for 1H24 fell 18% year-over-year to KRW 604.9B, with dividend and royalty income both declining.

• Major subsidiaries include LG Electronics, LG Chem, and LG Uplus, spanning IT services, real estate, education, sports, and leasing.

Financial highlights

• Dividend income in 1H24 was KRW 363B, down 27% year-over-year; royalties income was KRW 171B, down 3% year-over-year; rental revenue increased 5% year-over-year to KRW 71B.

• H1 2024 consolidated net income attributable to owners: KRW 596.1B; EPS: KRW 3,836.

• H1 2024 standalone net income: KRW 452.4B; standalone EPS: KRW 2,911.

• H1 2024 consolidated total assets: KRW 30,560.1B; equity: KRW 27,529.4B.

• H1 2024 consolidated cash flow from operations: KRW 675.4B.

Outlook and guidance

• Growth investments are planned in AI, bio & healthcare, and clean tech, with a cash allocation strategy balancing shareholder returns and future growth.

• LG Chem expects gradual margin recovery in petrochemicals, but macro uncertainties and geopolitical risks may limit improvement.

• LG Energy Solution anticipates continued battery demand growth, driven by global EV and ESS markets.

• LG Uplus targets further growth in 5G, AI, and platform-based services, with ongoing investments in data centers and EV charging.

• New business investments include direct and indirect stakes in domestic and overseas tech, healthcare, and mobility sectors.