SEOUL, July 7, 2022 – LG Energy Solution (LGES; KRX: 373220) today announced its preliminary earnings results for the second quarter of 2022.
LG Energy Solution reported tentative consolidated revenues of KRW 5.0706 trillion in the second quarter with an operating profit of KRW 195.6 billion.
The company’s revenue is expected to increase by 16.8 percent and the operating profit is likely to drop 24.4 percent from the previous quarter. Compared to the same period last year, the company’s revenue is expected to decrease by 1.2 percent and the operating profit by 73 percent.
The second quarter revenue of 2022 increased from the previous quarter thanks to increase in sales and cost pass-through mechanism to offset rising prices of earth metals. However, profitability decreased mainly due to the impacts from the COVID-19 lockdowns in China, global supply chain disruption, and the time gap between the actual increase in material costs and applying them to selling prices.
Moreover, the second quarter operating profit of last year (KRW 724.3 billion) includes one-off factors such as provisions related to recalls and a lump-sum payment of license fee from another industry player. Taking the factors into account, the operating profit for the second quarter of 2022 would see a modest decrease from the same period last year.
These figures are the tentative consolidated earnings based on the Korean International Financial Reporting Standards (K-IFRS) provided as a service to investors prior to LG Energy Solution’s definitive earnings result including net profit. Details on the announcement of the official quarterly report will be made public on a later date.