LG Display (US:LPL)2025-02-18 11:11Financial Performance - LG Display reported Q4 2023 earnings results with a total revenue of KRW 6.5 trillion, representing a 12% increase year-over-year[6]. - The company approved FY2023 financial statements, showing a net profit of KRW 1.2 trillion, up 15% compared to FY2022[6]. - LG Display reported a revenue of KRW 26,615 billion for 2024, an increase from KRW 21,331 billion in 2023, representing a growth of approximately 24.5%[24]. - The gross profit for 2024 was KRW 2,575 billion, compared to KRW 345 billion in 2023, indicating a significant improvement in profitability[24]. - Operating loss narrowed to KRW 561 billion in 2024 from KRW 2,510 billion in 2023, showing a reduction of about 77.7%[24]. - Total comprehensive loss for the period in 2023 was W (2,683,755) million, with a profit (loss) for the period of W (2,733,742) million[26]. - Revenue for 2024 increased to W 25,178,688 million, up 27.5% from W 19,811,015 million in 2023[178]. - Gross profit for 2024 was W 702,475 million, a significant recovery from a gross loss of W 1,635,890 million in 2023[178]. - Operating loss improved to W 1,800,625 million in 2024, compared to W 3,884,121 million in 2023, reflecting a 53.7% reduction[178]. - Loss for the year increased to W 3,034,736 million in 2024, compared to W 1,718,701 million in 2023[178]. - Total comprehensive loss for 2024 was W 3,166,571 million, compared to W 1,668,884 million in 2023[179]. Market Strategy and Expansion - LG Display plans to expand its market presence in North America, targeting a 20% increase in market share by 2025[6]. - The company is investing KRW 500 billion in R&D for new OLED technologies, aiming for a 30% improvement in production efficiency by 2026[6]. - LG Display's Q1 2024 earnings guidance projects revenue growth of 8% quarter-over-quarter, driven by seasonal demand[6]. - The company plans to expand its OLED and TFT-LCD production facilities, enhancing its capacity to meet growing demand in various sectors[19]. - The company has established subsidiaries across the Americas, Europe, and Asia, indicating a strategic focus on global market expansion[19]. Cash Flow and Investments - Approval was granted for the sale of real estate property, expected to generate KRW 300 billion in cash flow[7]. - Cash generated from operations increased to W 3,373,456 million in 2024 from W 2,819,329 million in 2023, representing a growth of approximately 19.6%[27]. - Cash flows used in investing activities decreased to W (1,363,248) million in 2024 from W (2,589,336) million in 2023, indicating a reduction of about 47.4%[27]. - The company reported a net increase in cash and cash equivalents of W (285,792) million in 2024, compared to an increase of W 444,275 million in 2023[28]. - The company invested W 140,600 million in a Money Market Trust controlled by the Parent Company[34]. Assets and Liabilities - Total assets decreased to KRW 32,860 billion as of December 31, 2024, down from KRW 35,759 billion in 2023, reflecting a decline of approximately 8.4%[22]. - Total liabilities also decreased to KRW 24,787 billion in 2024 from KRW 26,989 billion in 2023, a reduction of about 8.1%[23]. - The company’s cash and cash equivalents stood at KRW 2,022 billion as of December 31, 2024, down from KRW 2,258 billion in 2023[22]. - As of December 31, 2024, total equity attributable to owners of the Parent Company was W 6,542,261 million, down from W 7,232,182 million in 2023[26]. - The company’s total assets at December 31, 2024, were W 8,072,807 million, compared to W 8,770,544 million at the end of 2023[26]. - Total current assets increased to W 8,647,395 million in 2024 from W 5,590,482 million in 2023, reflecting a growth of approximately 54.5%[176]. - Total liabilities increased to W 26,003,253 million in 2024, compared to W 24,050,857 million in 2023, representing a rise of approximately 8.1%[177]. - The Group's total assets slightly increased to W 29,799,051 million in 2024 from W 29,732,412 million in 2023, reflecting a marginal growth of approximately 0.2%[176]. Research and Development - LG Display's research and development expenses for 2024 were KRW 1,448 billion, up from KRW 1,380 billion in 2023, indicating a continued investment in innovation[24]. Corporate Governance and Compliance - The company has initiated a related party transaction review, focusing on compliance and risk management[10]. - LG Display's ESG committee reported on the establishment of an ESG management system in Vietnam, aligning with global sustainability standards[11]. - LG Display's board approved a Corporate Value-up Plan, which includes strategic partnerships to enhance supply chain resilience[6]. Shareholder Information - LG Display's major shareholder, LG Electronics Inc., owned 36.72% of the Parent Company's common stock as of December 31, 2024[29].