LG Display (034220) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached KRW 6.708 trillion, up 28% QoQ and 42% YoY, driven by shipment growth across all product categories, especially OLED panels.

• Operating loss narrowed to KRW 94 billion, a significant improvement both QoQ and YoY, aided by business structure upgrades and favorable FX conditions.

• Net loss improved to KRW 471 billion in Q2 2024, compared to KRW 761 billion in Q1 2024 and KRW 699 billion in Q2 2023.

• For H1 2024, revenue was KRW 11,961.2 billion, down from KRW 21,330.8 billion in 2023, reflecting industry headwinds.

• The company completed a rights offering, increasing capital by KRW 710.9 billion and issued 142,184,300 new shares in March 2024.

Financial highlights

• EBITDA reached KRW 1,287 billion in Q2 2024, up from KRW 810 billion in Q1 2024 and KRW 130 billion in Q2 2023.

• Gross margin improved to 9.2% in Q2 2024 from 4.2% in Q1 2024 and -3.7% in Q2 2023.

• Area shipments rose 23% QoQ and 37% YoY to 6.5 million square meters, in line with guidance.

• ASP per square meter was $779, nearly flat QoQ, with increased small OLED panel shipments.

• Cash and cash equivalents at June 30, 2024, were KRW 1,974.1 billion.

Outlook and guidance

• Q3 area shipments expected to grow by mid-single digit percent QoQ, driven by increased panel purchases and seasonal demand.

• ASP per square meter projected to remain flat; OLED panel shipments, including mobile, expected to expand.

• Capital expenditures for 2024 are planned at the KRW 2 trillion level, down from KRW 3.5 trillion in 2023.

• Continued focus on OLED expansion, premium product mix, and cost competitiveness.

• Management expects future results to vary based on market conditions and strategic direction.