LG Display Reports First Quarter 2021 Results2021.04.29
SEOUL, Korea (Apr. 28, 2021) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2021.
wRevenues in the first quarter of 2021 decreased by 8% to KRW 6,883 billion from KRW 7,461 billion in the fourth quarter of 2020 and increased by 46% from KRW 4,724 billion in the first quarter of 2020.
wOperating profit in the first quarter of 2021 recorded KRW 523 billion. This compares with the operating profit of KRW 685 billion in the fourth quarter of 2020 and with the operating loss of KRW 362 billion in the first quarter of 2020.
wEBITDA in the first quarter of 2021 was KRW 1,620 billion, compared with EBITDA of KRW 1,774 billion in the fourth quarter of 2020 and with EBITDA of KRW 631 billion in the first quarter of 2020.
wNet income in the first quarter of 2021 was KRW 266 billion, compared with the net income of KRW 621 billion in the fourth quarter of 2020 and the net loss of KRW 199 billion in the first quarter of 2020.
LG Display registered KRW 6,883 billion in revenues and KRW 523 billion in operating profit in the first quarter of 2021.
The company saw a year-on-year increase of 46% in revenues as well as a turnaround to operating profit year-on-year, while recording a quarter-on-quarter decrease of 8% in revenues and 24% in operating profit respectively.
The demand for large-size displays such as TVs and IT products remained strong in the first quarter thanks in large part to the recent stay-at-home trend, although the first quarter typically tends to be a slow season. In addition to the favorable demand, component supply shortages in the industry led to a higher-than-expected increase in LCD panel prices, further contributing to the company’s solid performance. Meanwhile, the company’s shipment of mobile products decreased leading to a quarter-on-quarter decline in revenues.
LG Display recorded KRW 266 billion in net income and KRW 1,620 billion in EBITDA along with an EBITDA margin of 24% in the quarter, maintaining the 20% range following the last quarter.
Panels for IT devices accounted for 40% of the revenues in the first quarter of 2021, panels for TVs accounted for 31%, and those for mobile and other devices accounted for 29%.
The upward sales trend of OLED TV panels continued in the first quarter with the company recording a similar number of shipments than that of peak season (fourth quarter of 2020) despite the low seasonality in the first quarter. This solid performance has been driven by expanding growth in the premium TV market as consumers spend longer hours at home due to COVID-19, which has in turn redefined the value of their TVs. LG Display aims to sell a total of 8 million OLED TV panels by the end of the year.
For the mobile sector, LG Display will make efforts to make sure it is well-prepared for the mass-production of new products based on strengthening stability in terms of quality and yield rate, which will lay a more solid foundation for a turnaround. In addition, for the IT sector, the company will dedicate itself to further bolstering its market leadership so that it can continue generating profits based on enhanced production capabilities.
“The shift in consumer lifestyles as a result of the pandemic has brought OLED’s differentiated values and excellence to the attention of customers,” said Dong-hee Suh, CFO and Senior Vice President of LG Display. “We will continue to closely monitor any changes that the current pandemic situation might bring about so that we can respond immediately to any opportunities that present themselves.”