LG Display Reports Second Quarter 2021 Results2021.07.28
SEOUL, Korea (July 28, 2021) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2021.
■ Revenues in the second quarter of 2021 increased by 31% to KRW 6,966 billion from KRW 5,307 billion in the second quarter of 2020 and increased by 1% from KRW 6,883 billion in the first quarter of 2021.
■ Operating profit in the second quarter of 2021 recorded KRW 701 billion. This compares with the operating loss of KRW 517 billion in the second quarter of 2020 and with the operating profit of KRW 523 billion in the first quarter of 2021.
■ EBITDA in the second quarter of 2021 was KRW 1,770 billion, compared with EBITDA of KRW 413 billion in the second quarter of 2020 and with EBITDA of KRW 1,620 billion in the first quarter of 2021.
■ Net income in the second quarter of 2021 was KRW 424 billion, compared with the net loss of KRW 504 billion in the second quarter of 2020 and with the net income of KRW 266 billion in the first quarter of 2021.
LG Display registered KRW 6,966 billion in revenues and KRW 701 billion in operating profit in the second quarter of 2021.
LG Display recorded an all-time high second quarter revenues thanks to the high sales in TV displays including OLED, the solid performance in IT products, and the increase in LCD panel prices.
The company saw a year-on-year increase of 31% in revenues as well as a turnaround to operating profit year-on-year, while recording a quarter-on-quarter increase of 1% in revenues and 34% in operating profit. The company’s operating margin recorded 10% in the second quarter, reaching a double-digit percentage for the first time in 16 quarters.
LG Display recorded KRW 424 billion in net income and KRW 1,770 billion in EBITDA with EBITDA margin of 25.4% in the quarter – its highest margin since the third quarter of 2009.
LG Display posted 164% in the liability-to-equity ratio, 96% in the current ratio, and 69% in the net debt-to-equity ratio as of June 30, 2021, indicating consistent improvement.
Panels for IT devices accounted for 39% of the revenues in the second quarter of 2021, panels for TVs accounted for 38%, up 7% from the previous quarter thanks to the increase in panel prices and shipments, and those for mobile and other devices accounted for 23%.
LG Display’s OLED TV panel shipments in the first half of this year surpassed 3.5 million units, which accounted for 80% of last year’s annual shipments, putting the company on track to sell 8 million OLED panels within the year.
In the second half of this year, LG Display will continue to seek to increase profit by continuing to strengthen its position within the super large-size TV market and expand its position within the mid-size premium market. At the same time, the company will identify applications where OLED can unleash its distinct inherent value, and develop them into high-margin, high-growth segments.
Through this, the company is expected to rapidly increase its profitability. It aims to turn its large-size OLED business in the black in the second half of this year while pursuing an operating margin in a mid-single-digit range from 2022, and eventually, a double-digit range in the mid to long run.
LG Display’s P-OLED business has managed to secure its business operation stability with improvements having been made to its overall internal capabilities such as enhancements in development, production, and quality. In tandem with its strengthened partnerships, LG Display will further work growing the volume and preparing for new models, and reinforce its revenue base by broadening high margin portfolio such as wearables, etc.
For its LCD sector, LG Display is converting its capability into developing more value-added IT products, while putting a larger focus on highly-profitable products including super large-size and commercial products in the TV segment. In addition, the company will further strengthen its mid and long-term partnership with key strategic customers to preemptively respond to possible market changes down the road.
“We saw a solid performance in the second quarter as a result of the favorable LCD market situation as well as the company’s efforts to improve its OLED business,” said Dong-hee Suh, CFO and Senior Vice President of LG Display. “Although the market volatility is expected to remain in the future, we will step up our efforts to improve our OLED business performance and aim to solidify its business operations built through its partnerships with customers to maintain a stable performance in the LCD sector.”