LG Display Reports Improving But Still Negative Third Quarter Results

LG Display reported continued losses in the third quarter of 2023, marking six straight quarters of deficits, but showed signs of improvement through cost-cutting initiatives. The last time we looked at Korean analysts’ expectations for the third quarter, the estimates were for about 433 billion won in losses. So, how did things turn out in reality?

The company announced revenue of 4.785 trillion won ($3.54 billion) and an operating loss of 662 billion won ($490 million) for the three months ending September 30, 2023. The operating loss was reduced from 881 billion won ($654 million) last quarter through efficiency efforts and cost innovations, but sales remained flat.

Compared to the same period last year, revenue declined 29% while the operating loss narrowed 13% from 759 billion won in Q3’22. Net loss also improved to 775 billion won ($575 million), compared to a loss of 774 billion won ($574 million) a year ago.

LG Display aims to return to profitability in the fourth quarter of 2023. The company resolved production issues that delayed OLED panel shipments and is expanding capacity to meet demand. IT OLED production investments are also being accelerated for future growth.

According to its investor call, management remains confident in LG Display’s financial stability due to continued support from lenders, despite the prolonged industry downturn. The company continues to reduce its exposure to LCD panels while focusing on OLED and other growth areas.

LG Display
Q3’23Q2’23QoQ Change (%)Q3’22YoY Change (%)
Revenue4,785,287 million won4,738,571 million won0.996,771,355 million won-29.3
Operating profit-662,080 million won-881,470 million won24.89-759,306 million won12.80
Profit before tax-1,006,461 million won-877,130 million won-14.74-1,098,809 million won8.04
Net income-775,398 million won-698,770 million won-10.97-774,031 million won-0.18
Net profit of parent company-720,026 million won-858,125 million won16.09-789,511 million won8.8

LG Display (USD)
Q3’23Q2’23QoQ Change (%)Q3’22YoY Change (%)
Operating profit-489,919,000-653,886,00024.89-562,886,00012.80
Profit before tax-745,761,000-649,876,000-14.74-814,539,0008.04
Net income-574,795,000-517,292,000-10.97-573,383,000-0.18
Net profit of parent company-533,519,000-635,013,00016.09-584,818,0008.8