LG H&H reports 1,567bn won in Sales, 55bn won in Operating Profit

-      Sales and Operating Profit decreased 13.3% yoy and 57.6% yoy, respectively

Jan 31, 2024 – In 4Q 2023, LG H&H Co., Ltd. (The Company) reported 1,567bn won in sales (-13.3% yoy), 55bn won in operating profit (-57.6% yoy).

The Company’s sales declined across all business segments – Beauty, HDB, and Refreshment. Operating profit was negatively impacted by factors including the drop in Beauty’s profitability due to reduced demand from China and the costs related to overseas business structure reorganization.

In FY 2023, sales decreased 5.3% yoy to 6,805bn won and operating profit decreased 31.5% yoy to 487bn won.

Summary of 4Q & FY 2023 Results

[4Q & FY 2023 Results by Business Segment]

▲Beauty business 4Q 2023 sales decreased 23.7% yoy to 664bn won and operating profit decreased 90.8% yoy to 7bn won.

Beauty sales in major channels declined due to weak China demand, while sales in domestic channels continued to grow. 

China and DFS sales dropped by double-digit, and online and H&B sales grew as demand from domestic consumers and

foreign tourists increased. Operating profit was negatively impacted by reduced sales in China and costs related to overseas business reorganization.

FY 2023 sales decreased 12.3% yoy to 2,816bn won and operating profit decreased 52.6% yoy to 147bn won.

▲HDB business 4Q 2023 sales decreased 4.5% yoy to 503bn won and operating profit decreased 3.7% yoy to 18bn won.

HDB sales declined due to softer demand in domestic market and increased volatility in overseas business. Key brands ‘Physiogel’ 

and ‘Euthymol’ reported steady growth, while ‘Oriental Herb Medicare Line’, a premium line of the brand ‘Bamboo Salt’, 

reported strong sales growth in online channel. Operating profit fell slightly, despite product mix improvement.

FY 2023 sales decreased 1.2% yoy to 2,182bn won and operating profit decreased 34.0% yoy to 125bn won.

▲Refreshment business 4Q 2023 sales decreased 2.6% yoy to 401bn won and operating profit decreased 5.3% yoy to 29bn won.

Refreshment sales fell despite continued growth in sales of key brands, due to softer domestic demand for beverages. 

Key brands ‘Coca-Cola Zero’, ‘Monster Energy’, and ‘Powerade’ reported solid performance, 

but sluggish domestic economy and unfavorable weather conditions had negative impact on 

beverage consumption. Operating profit declined due to headwinds from high raw material prices and operating costs.

FY 2023 sales increased 2.4% yoy to 1,807bn won and operating profit 1.4% yoy to 215bn won.