LG Household & Health Care Q2 Operating Profit 157.8 Billion KRW... 27% Decrease YoY

LG Household & Health Care announced on the 27th that its consolidated operating profit for the second quarter of this year was 157.8 billion KRW, a decrease of 27.1% compared to the same period last year.

[Photo by LG Household & Health Care]

During the same period, sales revenue decreased by 3.0% to 1.8077 trillion KRW, and net profit fell by 23.5% to 96.4 billion KRW.

Sales in the beauty business division recorded 780.5 billion KRW, down 8.5%, and operating profit was 70.0 billion KRW, down 24.9%.

The company explained that despite strong performance in domestic retail channels, sales declined due to delayed recovery in Chinese consumer demand. Sales in purely domestic retail channels such as department stores and H&B (Health & Beauty) stores increased, but duty-free sales dropped by double digits, resulting in a single-digit negative growth in Chinese sales. Operating profit decreased due to the slowdown in key channel performance and costs related to business efficiency improvements.

Sales in the Home Care & Daily Beauty (HDB) business division grew by 0.5% compared to the same period last year, reaching 546.0 billion KRW, while operating profit fell sharply by 53.6% to 27.6 billion KRW.

LG Household & Health Care stated that sales of brands such as Physiogel and Usimol increased, leading to strong daily beauty (household goods) sales, but operating profit declined due to ongoing cost and fixed expense burdens as well as expenses related to business efficiency improvements.

Sales in the beverage (refreshment) business increased by 3.2% year-on-year to 481.2 billion KRW, while operating profit decreased by 5.5% to 60.2 billion KRW.

The company explained that sales increased due to strong performance of zero-carbonated and energy drinks, but operating profit declined due to continued cost-related burdens.

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