LG Corp (003550) Q4 2024 earnings summary

Executive summary

• Consolidated revenue for 2024 decreased 3.4% year-over-year to KRW 7.19T, with total revenues of consolidated subsidiaries increasing but equity method gains declining.

• Consolidated operating profit dropped 38.2% year-over-year to KRW 0.98T, mainly due to deteriorating performance of affiliates subject to equity method gains.

• Separate revenue for 2024 fell 9.6% year-over-year to KRW 0.93T, with dividend income down 19.8% and royalties income flat.

Financial highlights

• Net income attributable to controlling interests declined 53.3% year-over-year to KRW 588.7B.

• Gross profit decreased 28.1% year-over-year to KRW 1.44T.

• Dividend payout ratio reached 76% of separate net income, with a DPS of KRW 3,100 for common shares.

• Assets increased by KRW 1.4T, liabilities by KRW 0.3T, and equity by KRW 1.1T compared to FY23 end.

Outlook and guidance

• ROE target set at 8-10% by 2027, up from a 5-year average of 7.8%.

• Focus on nurturing new businesses in AI, software, bio & healthcare, and clean tech.

• Dividend policy aims to pay out more than 60% of separate net income, excluding non-recurring income.