In the first quarter of 2025 (January to March), LG Innotek recorded an operating profit of 125.1 billion won, a decrease of 28.9% compared to the same period last year, due to intensified competition in its customer camera module supply chain. LG Innotek plans to focus on improving profitability through diversification of its portfolio, including business in mobility and high-value semiconductor substrates.
LG Innotek reported on the 23rd that it recorded sales of 4.9828 trillion won and an operating profit of 125.1 billion won in the first quarter of 2025. Compared to the same period last year, sales increased by 15%, marking the highest quarterly sales, but operating profit decreased by 28.9%. This figure is approximately 17.46% higher than the projected consensus of 106.5 billion won from the securities industry.
An official from LG Innotek noted, "Despite the seasonal off-peak period, we recorded the highest-ever sales in the first quarter due to stable supply of high-performance camera modules, recovery in demand for semiconductor and display substrate products, and favorable exchange rate effects. However, operating profit decreased compared to the same period last year due to the slowdown in growth in upstream industries such as electric vehicles and increased market competition in the optical business."
The optical solution business recorded sales of 4.1384 trillion won, an 18% increase compared to the same period last year. Sales increased due to the stable supply of high-performance camera modules for smartphones, despite being a seasonal off-peak period.
The substrate materials business recorded sales of 376.9 billion won, a 15% increase compared to the same period last year. This figure represents a 2% decrease compared to the previous quarter. Even in the seasonal off-peak period, sales increased compared to the same period last year due to the recovery in demand for semiconductor substrates and display substrates.
The vehicle components business recorded sales of 467.5 billion won, a decrease of 5% compared to the same period last year and a 2% decrease compared to the previous quarter. Sales slightly declined due to the slowdown in growth in upstream industries such as electric vehicles; however, sales of high-value products, such as vehicle communication and lighting modules, are gradually increasing.
The vehicle components business is continuously improving profitability through development centered on platform models (universal products with minimal customization), localization of core materials and components, and process innovation to enhance cost competitiveness.
Park Ji-hwan, Chief Financial Officer of LG Innotek, said, "While driving our business in AI and semiconductor parts led by FC-BGA and vehicle application processor modules, we are also enhancing collaboration with leading corporations in the robotics field to advance our business portfolio."