LG Display (034220) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached KRW 6.82 trillion, up 2% quarter-over-quarter and 43% year-over-year, driven by increased small panel shipments and OLED-centric business transition.

• Operating loss narrowed to KRW 80.6 billion, including a one-off ERP-related expense exceeding KRW 100 billion, and net loss reduced to KRW 338 billion.

• For the first nine months of 2024, revenue was ₩18.78 trillion, down from ₩21.33 trillion year-over-year, with operating loss narrowing to ₩644 billion and net loss to ₩1.64 trillion.

• OLED products accounted for 53% of product sales for the period, up from 43% a year earlier.

Financial highlights

• EBITDA for Q3 2024 was KRW 1,162 billion with a 17% margin, and gross margin improved to 12.4% from 9.2% in Q2.

• Area shipment declined 3% quarter-over-quarter but grew 32% year-over-year, with ASP per square meter up 6% to $825.

• Cash and cash equivalents at quarter-end stood at KRW 1.8 trillion.

• Gross profit for the first nine months was ₩1.67 trillion, up from ₩345 billion year-over-year.

• R&D expenses were ₩1.76 trillion, representing 9.4% of sales.

Outlook and guidance

• Q4 shipment expansion for TV and notebook PC panels projected to deliver mid-single digit percentage growth quarter-over-quarter, with ASP per square meter also expected to rise by a mid-single digit percentage.

• Capital expenditure for 2024 is planned at the ₩2 trillion level, down from ₩3.5 trillion in 2023, reflecting a focus on efficiency.

• Continued focus on scaling OLED business, operational efficiency, and premium product innovation amid market volatility.