LG Australia bounces back to growth during FY20
LG Electronics Australia's latest financial report has unveiled the company achieved a net profit after tax of AU$15.8 million, an increase on the AU$12 million reported last financial year.
For the period ending 31 December 2020, the Australian arm of the South Korean tech company recorded revenue just shy of AU$944 million, up from the AU$860 million it achieved last year.
Noting its primary activity consisted of importing and supplying retailers with household electronic appliances, IT equipment, and mobile phones, LG Electronics Australia took just over AU$1 billion from customers, a boost from the AU$950 million last year. Meanwhile, payments to suppliers and employees came in at roughly the same amount.
Income tax paid during FY20 was AU$7.2 million, up from AU$5.7 million, off the back of pre-tax profit of AU$23 million. Of the total income tax amount, AU$7.36 million was tax expenses, another AU$278,000 was adjustments in respect to prior years, and deferred tax expenses amounted to AU$432,000.
During the full year, LG Electronics Australia had 296 employees, down slightly from the 309 employees recorded last year. Despite this, employee-related expenses cost the business nearly AU$41 million, AU$2 million more than last year.
The direct parent entity of LG Electronics Australia is South Korea-based LG Electronics Inc, which announced in April it was closing its mobile business unit globally. The exit is expected to be completed by July 31.
According to LG, exiting the "incredibly competitive" mobile phone sector would enable the company to focus its resources in other growth areas, such as electric vehicle components, robotics, and artificial intelligence.
Despite the closure of its mobile business unit, the company said it would continue research and development into core mobile technologies such as 6G.
LG Electronics Australia said it does not believe the closure would have any impact on its operations in Australia and New Zealand.
"The directors of the company assess that the financial effects are not material," the company said.