Press Release

■Sales up 26.4% and net profit up 42.2% for the term

■ Record-breaking performance in all areas including sales, operating profit, and net profit

LG Household & Health Care (LG H&H) Ltd. (CEO: Suk Cha) announced third quarter business results of KRW 759.3 billion in sales and 98.4 billion in operating profit, 26.4% and 41.8 year-on-year increases, respectively. The operating profit margin rose to 13.0%, a 1.5 percentage point increase, and net profit for the term grew by 42.2% to KRW 66.4 billion.

The figures revealed that the firm recorded its highest quarterly growth in every area including sales, operating profit, and net profit since its 2001 incorporation.

▲ In household goods, sales amounted to KRW 316 billion and operating profit reached KRW 46.5 billion, 14.8% and 22.1% year-on-year increases, respectively. Centering on premium brands such as Ihee Care for Style and Beyond, hair care (up 35%) and body care (up 28%) sectors led the overall growth. The sanitary product sector grew by 19%, with an 18.3% growth in market share, a 3.4% point increase compared to the previous year.

The sale of Chuseok gift sets also contributed to the company’s growth, showing a 19% year-on-year increase to KRW 48.5 billion thanks to a thorough analysis of demand and a distinguished product selection.

▲ In cosmetics, sales skyrocketed to KRW 242.2 billion with an operating profit of 26.8 billion, 56.6% and 125.6% increases, respectively. While existing brands have been showing steady growth, Su:m, cosmetics featuring fermentation technology, made remarkable achievements (67%). With August’s successful launch of LG H&H’s fourth department store brand, the natural herbal cosmetics line Belif, the company established an additional foothold.

Thanks to continuous store expansion and product diversification, the growth of the popular cosmetics brand the Face Shop has accelerated as well, recording KRW 72.9 billion in sales and 11.7 KRW billion in operating profit. These were 19.5% and 31.9% increases, respectively. The number of outlets has expanded to 838 (domestic) and 320 (overseas), 117 and 61 more than at the close of last year.

▲ In the beverage sector, as existing brands showed steady growth together with the stronger than expected sales of new noncarbonated beverage brands, sales amounted to KRW 196 billion with an operating profit of KRW 24 billion, 14.8% and 23.6% year-on-year increases, respectively.

In the soda sector, the flagship brand Coca-Cola led with solid growth of 6.0%, while growth has remained robust in the noncarbonated beverage sector as well, fueled by the eye-popping 272% growth of Glaceau Vitamin Water, Powerade (up 38%) and Georgia Coffee (up 81%).