LG Electronics’ revenue in NZ grows by 57% in FY 2021

The New Zealand branch of LG Electronics Australia has released its latest financial report, revealing that the company's total revenue shot up by nearly NZD $45 million from $78.8 million, reaching a total of NZD $123.7 million for the year ending December 31, 2021.

The profit after tax also nearly doubled, from NZD $1.25 million in 2020 to $2.4 million in 2021.

The company's promotion costs fell from nearly NZD $600,000 in 2020 to about $372,000 in 2021.

Its employee benefits expenses, administrative expenses, occupancy costs, finance costs and depreciation and amortisation expenses all increased slightly.

However, LG Electronics' marketing, distribution and selling expenses also jumped dramatically.

Its marketing expense nearly tripled, rising from about NZD $930,000 in 2020 to just over $2.7 million in 2021. Meanwhile, its distribution and selling expenses increased from nearly NZD $4.7 million to $7.2 million in the same period.

During the year, the New Zealand branch also purchased inventory at the cost of nearly NZD $102.7 million, up from $63.2 million in 2020 from LG Electronics Incorporated; and obtained management and accounting services charged at $4.5 million, a slight increase from $4.4 million in 2020 from LG Electronics Australia Pty Limited.

The financial results for 2021 show steady growth after the COVID-19 pandemic in 2020. The company's New Zealand branch received NZD $204,000 in wage subsidies from the New Zealand Government during COVID-19 lockdowns in 2020.

"It was treated as a credit to employee benefits expense in the statement of profit or loss and other comprehensive income for the year ended December 31, 2020," the financial statement noted at the time.

LG Electronics was uncertain about the future disruption due to COVID-19 at the time but was confident that the company would not face too much change.

The annual report noted, "Although the company expects the negative impact of COVID-19 on global economic and market conditions to continue, the duration and extent of the further spread of COVID-19 and resulting changes to local and global government reactions and policies remain uncertain at this time, and therefore the full impact on results of operations remains still unknown.

"As the situation remains fluid, the management will continue to monitor the situation and makes appropriate decisions as circumstances change, At the date of this report, the directors of the company do not expect any significant changes in the operations of the company.

Deloitte carried out the independent auditor's report for FY 2021.

*Figures have been rounded.