LG Saenghwal Geongang Reports Sales of 8.09 Trillion KRW and Operating Profit of 1.29 Trillion KRW

[Asia Economy Reporter Moon Hyewon] LG Household & Health Care announced on the 27th that it achieved sales of 8.0915 trillion KRW and operating profit of 1.2896 trillion KRW last year.

Sales and operating profit increased by 3.1% and 5.6% respectively compared to the previous year, marking 17 consecutive years of growth.

Despite an unstable business environment due to the emergence and spread of successive variant viruses, which heightened uncertainty over economic recovery, the company expanded its business based on the principle of strengthening brand positioning. Through a solid brand portfolio in Beauty, HDB, and Refreshment, it recorded all-time high results surpassing pre-COVID levels in sales, operating profit, and net profit.

Total beauty sales grew by 3.2% to 5.732 trillion KRW, and operating profit increased by 8.5% to 1.0468 trillion KRW.

Fourth-quarter sales decreased by 3.4% year-on-year to 2.0231 trillion KRW, and operating profit fell by 5.9% to 241 billion KRW. Beauty achieved strong results during the major Chinese shopping event, Singles' Day, reaffirming the brand's global presence in the increasingly competitive Chinese luxury market. HDB’s premium daily beauty brands such as ‘Physiogel’ and ‘Dr. Groot’ continued to perform well, driving sales and profit growth. Although Refreshment faced cost burdens due to raw material price increases, strong performances from key brands sustained sales and profit growth.

Annual sales in the beauty business remained similar to the previous year at 4.4414 trillion KRW, while operating profit increased by 6.5% to 876.1 billion KRW.

Despite a global economic downturn and ongoing pandemic-induced market contraction, luxury cosmetics maintained solid performance based on strong brand power. In China, customer touchpoints were expanded through entry into new channels beyond existing Tmall, JD, and VIP. The flagship brand ‘Whoo’ strengthened its luxury positioning in the global beauty market by solidly reinforcing its ultra-premium lineups such as ‘Cheonyuldan’ and ‘Hwanyu’. Whoo grew by 12% year-on-year, while Ohui and CNP also grew by more than 8%.

Annual sales of the HDB business increased by 9.9% year-on-year to 2.0582 trillion KRW, and operating profit rose by 1.7% to 208.9 billion KRW, surpassing 2 trillion KRW in annual sales.

Premium brands strategically nurtured in daily beauty such as ‘Dr. Groot’, ‘Himalaya Pink Salt’, and ‘Physiogel’ led the growth.

Annual sales of the Refreshment (beverage) business increased by 5.2% year-on-year to 1.5919 trillion KRW, and operating profit rose by 6.2% to 204.7 billion KRW.

This content was produced with the assistance of AI translation services.