Seoul, South Korea – LG Electronics Inc. announced on Friday that its first-quarter operating profit for 2025 has experienced an 11 percent year-on-year decline, primarily due to escalating material costs and intensified market competition.

According to a regulatory filing, the company's operating profit for the first quarter amounted to 1.33 trillion won ($984.9 million), down from 1.5 trillion won ($1.1 billion) in the same period last year.

Despite the decrease in profits, LG Electronics reported a 3.3 percent increase in sales, reaching a record high of 21.09 trillion won ($15.6 billion) for any first quarter. The company did not disclose its net income figures in the preliminary report.

LG Electronics attributed the decline in operating profit to the rising costs of raw materials and heightened competition within the market. However, the company highlighted its ability to maintain operating profits above the 1 trillion won mark for the fifth consecutive year since the first quarter of 2020.

In response to market uncertainties, including the delayed recovery of consumer demand, LG Electronics is implementing new business strategies. These include the introduction of subscription-based services and the expansion of its B2B business operations, which are considered key drivers for future growth.

The company also emphasized the positive impact of its diversified home appliance product portfolio, which has strengthened overall sales. Additionally, strong sales of its premium OLED televisions contributed significantly to the company's revenue during the January-March period.

LG Electronics plans to release its complete first-quarter earnings report later this month, providing detailed financial results for each business division.