LG posts 22pc Mideast sales growth in H1

DUBAI - LG Electronics yesterday reported that its Middle East and African sales in the first half of this year rose some 22 per cent to $709 million year-on-year with the UAE among the top performers with a 48.3 per cent surge.

By A Staff Reporter

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Published: Tue 19 Aug 2003, 5:51 PM

Last updated: Wed 1 Apr 2015, 7:51 PM

M. B. Shin, President, LG Electronics Middle East & Africa, said at this pace the South Korean digital leader would be exceeding its projected sales target of $1.387 to cross $1.4 billion this year - a step closer to achieving an ambitious $2.3 billion goal set for 2005.

Shin said but for the regional uncertainties which negatively impacted results from Jordan and lost business in Tunisia, the result would have been better by another 10-15 per cent. During the first half, LG's profit has risen by some 7-10 per cent.

"Sustained sales growth and performance have been achieved through the aggressive pace of bringing new products to market and intensive region wide marketing initiatives. This stellar performance underlines the importance of the region and justifies our recent investment in the regional digital centre and the Middle East's first air conditioning academy, both of which are in ." LG has invested some $2.6 million for these two projects.

Shin said 10 out of the 12 LG area bases recorded positive growth with Jordan and Tunisia falling into negative territory. UAE, which posted a sales of $119 million, up 48.30 per cent over the same period. Other top performing countries include Iran with a sales turnover of $162 million - up 36.10 per cent.

Higher UAE sales have been attributed to boosting the available GSM and monitor range, the increase in central air-conditioning sales, including some high-profile project account wins and increased awareness of the brand's PDP range.

Over the past six months, countries producing the biggest per centage sales increases were Egypt, Pakistan and Morocco.

Egypt recorded a 76.3 per cent rise in first half sales, with a turnover of $72.5 million. Pakistan's half-year sales were up 76.1 per cent to $37 million and Morocco's rose 71.9 per cent to $24.87 million.

"In Egypt we are now being positively impacted by the setting up, two years ago, of a subsidiary in that country. We now anticipate great things from this vast market, particularly from the GSM mobile phone segment," said Shin. In Pakistan, LG strengthened its hold on the TV, monitor and residential air conditioning segments. LG is now a market leader in Pakistan as well as the country's leading supplier of imported washing machines.

Products which gained most ground in terms of per centage sales growth were GSM mobiles - sales more than tripled to $27 million - vacuum cleaners, which rose 45.40 per cent to $8 million, refrigerators, which increased 36.50 per cent to $56 million and CD-Roms, which increased 36.30 per cent to $30 million.

Shin said new product lines have been introduced into this region since the start of this year.

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