LG Display swings back to profit in Q4 2024

LG Display CEO Jeong Cheol-dong speaks ahead of the firm's press event to introduce its fourth-generation organic light-emitting diode at LG Sciencepark in Seoul, Jan. 16. Courtesy of LG Display

LG Display managed to swing back to an operation profit in the fourth quarter of last year, boosted by its improved organic light-emitting diode (OLED) sales in its overall sales mix, the company said Wednesday.

During an earnings call, the display maker said it posted an operating profit of 83.1 billion won ($57.8 million) and sales of 7.83 trillion won. Its operating profit improved from 80.6 billion won in the third quarter, while its revenue increased 6 percent year-on-year and 15 percent from three months earlier.

The company’s 2024 sales stood at 26.62 trillion won, up 25 percent year-on-year. During the same period, its operating loss stood at 506.6 billion won, improving by nearly 2 trillion won from 2.51 trillion won in 2023.

The quarterly operating profit came a year after the company posted a 131.7 billion won operating profit in the fourth quarter of 2023 but sank into a 469.4 billion won operating loss in the first quarter of 2024, due to seasonal effects related to Apple’s new smartphone release late in the third quarter.

The operating profit in the fourth quarter of 2024 was also apparently affected by Apple’s iPhone 16 release late in the third quarter.

LG Display said its shipments of OLEDs for smartphones showed a noticeable increase in the fourth quarter, pushing up the proportion of OLED products in its overall sales mix to a record-high 60 percent.

Due to the influence of seasonal effects on its profitability, analysts assume that the company may return to an operating loss of 204.5 billion won in the first quarter of this year.

A KT official holds Apple's iPhone 16 during a launching event hosted by the telecom company in southern Seoul's Gangnam District, Sept. 20. Korea Times photo by Ha Sang-yun

Although the short-term forecast remains gloomy, the company's improved OLED sales within its overall sales mix, coupled with a conservative approach to investments, are seen as optimistic indicators for its yearly profits.

During the earnings call, LG Display said it expects to make investments worth around 2 trillion won this year, similar to the 2.2 trillion won of total investments it made last year, as it “maintains a conservative approach due to growing external uncertainties and volatilities in demand.”

“The company's current priorities are improving its business structure, strengthening financial stability and securing sustainable profitability,” it said.

To achieve an operating profit by the end of this year, the company said it will “strengthen its core capabilities across all areas of the OLED businesses” as well as bring “improvements in costs and operational efficiency.”

For this, LG Display said it will improve its competitiveness in quality and productivity for OLEDs for mobile and information technology devices, as well as increase shipments. The company added that it seeks a 20 percent year-on-year growth in mobile OLED shipment volume this year.

On the other hand, LG Display said it will concentrate efforts on improving the cost structure of large OLEDs for TVs, due to remaining market uncertainties.

“Despite the increasingly volatile market environment, LG Display is focusing its efforts on enhancing profitability through improvements in sales mix toward OLED as well as intensive cost-saving activities,” LG Display Chief Financial Officer Kim Sung-hyun said. “By improving our competitiveness, we will facilitate a turnaround on an annual basis.”