LG Display Co, Ltd (LPL) has reported a 1% growth in revenue for the fourth quarter of FY23, reaching KRW 7.4 trillion. This increase in revenue was driven by a 55% sequential rise in panel shipments for OLED mobile devices, TVs, and IT products to meet seasonal demand.
The company stated that it achieved a turnaround and returned to profitability for the first time in seven quarters, primarily due to the expansion of high-value-added products centered on OLED. Panels for TVs accounted for 18% of revenues in the fourth quarter, while panels for IT devices, including monitors, laptops, and tablet PCs, accounted for 31%. Panels for mobiles and other devices accounted for 44%, and panels for automobiles accounted for 7%. Overall, OLED’s revenue contribution rose to 57%.
In terms of margins, LG Display saw a gross margin of 11.7% compared to a margin loss of (0.3)% a year ago. The operating income reached KRW 132 billion, in contrast to a KRW (876) billion loss a year ago, resulting in a margin of 1.8% compared to a margin loss of (12)% a year ago.
Furthermore, the net income increased to KRW 51 billion, compared to a net loss of KRW (2.09) trillion a year ago. Additionally, EBITDA climbed 509% year-over-year to KRW 1.27 trillion, with a margin of 17.2% compared to 2.9% a year ago.
Looking ahead, Sung-Hyun Kim, CFO of LG Display, acknowledged the potential market volatility due to unstable macroeconomic conditions but emphasized the company’s focus on creating customer value and securing profitability by strengthening the competitiveness of their OLED businesses and future growth bases.
LG Display is also an important supplier of screens for Apple Inc’s new headset, Vision Pro, which is set to start sales next month. Analysts anticipate that this partnership will boost the supply of liquid crystal display (LCD) panels for Samsung Electronics Co, Ltd’s new TVs this year.
To strengthen its financial position, LG Display announced plans to reduce its investment in 2024 to around KRW 2 trillion, compared to KRW 3.6 trillion in 2023.
In terms of stock performance, LPL shares closed higher by 4.44% at $5.17 on Tuesday.
Overall, LG Display’s fourth-quarter results showcase its successful turnaround and profitability, driven by the growing demand for OLED products. The company’s focus on strengthening its OLED business and future growth bases positions it well for continued success in the display industry.
