LG Electronics boosted profitability after posting its largest-ever quarterly revenue in the first quarter. LG Electronics said on the 29th that consolidated first-quarter revenue was 23.7272 trillion won and operating profit was 1.6737 trillion won. Revenue rose 4.3 percent from a year earlier, setting a record for a first quarter, while operating profit increased 32.9 percent to the third-highest first-quarter figure on record.

Revenue fell 0.5 percent from the previous quarter, but operating profit swung to a profit from a 109.0 billion won loss in the previous quarter. Net profit was 1.0051 trillion won, up 14.8 percent from a year earlier.

Despite economic uncertainty, key businesses such as home appliances and TVs supported results on the back of premium leadership. Combined quarterly revenue for the HS (Home Appliance Solution) and VS (Vehicle Solution) business divisions topped 10 trillion won for the first time.

B2B revenue was 6.5 trillion won, accounting for 36 percent of total company revenue. That was up 1 percent from a year earlier and 19 percent from the previous quarter. Subscription business revenue was 640.0 billion won, up 15 percent from a year earlier, and it stressed that it maintained double-digit growth.

The HS division posted revenue of 6.9431 trillion won and operating profit of 569.7 billion won. Revenue was the highest for any quarter. It maintained an operating margin of 8.2 percent despite rising raw material prices and the impact of U.S. tariffs. A strategy of targeting both premium and volume segments while expanding the share of appliance subscriptions was effective. In the second quarter, it plans to pursue both growth and profitability through targeting the global south and optimizing its supply chain.

The MS (Media Entertainment Solution) division posted revenue of 5.1694 trillion won and operating profit of 371.8 billion won. Operating profit rose sharply from a year earlier and returned to positive territory from a loss in the previous quarter. It said the result reflected strong premium sales and growth in the webOS platform business, combined with more efficient marketing spending and lower fixed costs. In the second quarter, it will focus on responding to sports events and expanding webOS platform partnerships.

The VS division posted revenue of 3.0644 trillion won and operating profit of 211.6 billion won. Both revenue and operating profit were the highest for any quarter. Quarterly operating margin exceeded 6 percent by a wide margin for the first time since the division was launched. Sales increased mainly to European automakers as in-vehicle infotainment solutions were moved upmarket and applied to more models.

The company said, "Given that the vehicle components business has been repeating stable growth based on orders, it is very meaningful from the perspective of the company-wide business portfolio that it is establishing itself as a stable cash cow business in the B2B sector, following the core home appliance business."

The ES (Eco Solution) division posted revenue of 2.8223 trillion won and operating profit of 248.5 billion won. Weakened consumer sentiment due to the Middle East war and higher labor costs from hiring staff for key businesses affected results. Both revenue and operating profit fell from a year earlier. In the second quarter, it plans to focus on region-specific products such as North American unitary and European heat pumps, and on securing business opportunities in AIDC (artificial intelligence data center) cooling solutions.