LG Display Reports Third Quarter 2023 Results

LG Display reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending Sept. 30, 2023.

Revenues in the third quarter of 2023 increased by 1% to KRW 4,785 billion ($3.54 billion) from KRW 4,739 billion in the second quarter of 2023 and decreased by 29% from KRW 6,771 billion in the third quarter of 2022. Operating loss in the third quarter of 2023 recorded KRW 662 billion ($490 million). This compares with the operating loss of KRW 881 billion in the second quarter of 2023 and with the operating loss of KRW 759 billion in the third quarter of 2022.

EBITDA profit in the third quarter of 2023 was KRW 382 billion ($280 million), compared with EBITDA profit of KRW 130 billion in the second quarter of 2023 and with EBITDA profit of KRW 391 billion in the third quarter of 2022. Net loss in the third quarter of 2023 was KRW 775 billion ($570 million), compared with the net loss of KRW 699 billion in the second quarter of 2023 and with the net loss of KRW 774 billion in the third quarter of 2022.

The company witnessed a delay in the full recovery of demand due to macroeconomic uncertainties and inventory adjustments continuing in downstream industries during the third quarter. Nevertheless, the impact varied by product category, including TVs, IT products, and mobile devices, and LG Display’s revenues remained consistent with the previous quarter.

LG Display’s losses were reduced compared to the previous quarter and the same period last year, leading to a continued performance improvement. This was driven by the company’s all out efforts to advance its business structure, innovate its cost structure as well as improve operational efficiency.

Panels for TVs accounted for 23% of revenues in the third quarter, while panels for IT devices including monitors, laptops, and tablet PCs accounted for 40%, panels for mobiles and other devices accounted for 28%, and panels for automobiles accounted for 9%.

LG Display is to strengthen its core businesses in response to market demand and changes in the business environment and aims to focus on improving its profit structure through continuous cost innovation at the company level. 

With respect to its large-sized OLED business, the company will advance its premium TV market leadership through a customer-oriented product portfolio centered on ultra-large products, while securing profitability by implementing cost innovation such as reducing the material costs of core components.

For its small- and mid-sized OLED business, LG Display will make full-fledged efforts to expand panel shipments for mobile products by leveraging its increased production capacity. Meanwhile, the company will solidify OLED technology leadership for IT devices in preparation for mass production and distribution in 2024.

In the automotive display business, LG Display plans to solidify its position as a leading force in the market by securing more orders and sales through its differentiated technological prowess in Tandem OLED and high-end LCD, stringent quality control, and reliable supply capacity.

“Despite the challenging market conditions we have faced this year, we are accelerating the reorganization of our business structure and gradually improving profitability by implementing cost innovation. We expect to achieve a turnaround in profit in the fourth quarter as excessive panel inventory adjustments are eased and panel shipments for mid- and large-sized OLEDs and new mobile devices increase to meet year-end seasonal demand,” said Sung-hyun Kim, CFO and SVP at LG Display.