LG Electronics Australia announces AU$11.9m profit for 2015

LG Electronics' Australian business has achieved an increase in net profit after tax from ordinary activities for the full year ended December 31, 2015.
Written by Aimee Chanthadavong, Contributor

LG Electronics Australia has announced profit gained from ordinary activities after tax was AU$11.9 million for the full-year ended December 31, 2015, an increase from AU$9.1 million recorded in the last financial year.

The company also reported total revenue of AU$695 million, a drop from AU$725 million that was announced last year.

Gross profit came in at AU$132 million, which was also down for the previous financial year by AU$12 million.

The total tax LG Electronics Australia paid for the year was stable at AU$4.8 million.

The release of the company's Australian results comes days after LG published its earnings guidance for the first quarter of 2016 financial year. LG said it anticipates its biggest profit in seven quarters, predicting operating profit of 500.52 billion won and revenue of 13.362 trillion won.

The profit is a jump of 65.5 percent and exceeds that of the local analyst consensus of 426.6 billion won, and is its biggest since the second quarter of 2014.

However, the company highlighted the predicted numbers do not include earnings from the G5, which is expected to increase expectations of a similar or even better profit for the second quarter.

Earlier this year, LG Electronics Australia found itself in hot waters with the Australian Competition and Consumer Commission (ACCC) when the consumer watchdog alleged LG made false or misleading representations to consumers on their rights when it came to faulty LG goods.

More specifically, the ACCC alleged that in relation to defects with LG's televisions, the tech giant misrepresented to consumers, retailers, and repairers that the remedies available to consumers were limited to the LG manufacturer's warranty.

It is alleged by the ACCC that when the defect occurred in an LG television after the LG manufacturer's warranty had expired, the consumer was only entitled to a remedy if the consumer paid for the costs of assessing the failure.

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