LG Electronics announced that its operating profit during the first quarter this year fell eleven percent on-year to one-point-33 trillion won, or around 985 million U.S. dollars.

In a regulatory filing on Friday, LG Electronics said the operating profit fell due to rising material costs and increased market competition, but that the first-quarter operating profit has exceeded one trillion won for the fifth consecutive year since 2020.

Sales jumped three-point-three percent on-year to reach 21-point-one trillion won, a record high for the January-to-March period.

The home appliance giant cited an introduction of a new business method of subscriptions and an expansion of business-to-business projects to have served as the growth engine that helped the company overcome uncertainties, such as delayed recovery in market demand.

The company is expected to release its final first-quarter earnings report in late April, including the net income and figures from each business.