Press Release

January 27, 2015 – In 4Q 2014, LG Household & Health Care, Ltd. (CEO: Suk Cha) reported 1.2 trillion won in sales (+14.5% yoy), and 111 billion won in operating profit (+30.9% yoy). Since 2005, sales has increased for thirty-eight consecutive quarters, and operating profit has increased for thirty-nine quarters. Quarterly operating profit exceeded 100 billion won for the first time in 4Q. Also, quarterly sales exceeded 1 trillion won for two consecutive years.  

Despite of China cosmetics business restructuring in 1Q, the Sewol Ferry disaster in 2Q, and enlarged scope of ordinary wage in 3Q, sales and operating profit gradually improved as (1) such impacts faded, and (2) China business restructuring throughout 4Q13 and 1Q14, started to bring in favorable results.

Under such difficult environment, 4Q 2014 sales growth was led by Great China Region customers’ high interest in prestige cosmetics including ‘Whoo’ and ‘SU:M’. Prestige cosmetics delivered 100% yoy growth, and ‘Whoo’ achieved the highest sales among all brands in DFS. In addition, major brands delivered higher than market growth in all prestige channels including DFS, door-to-door, and department stores. As a result, Beautiful business sales increased 32.2% yoy to 558 billion won, and operating profit increased 86.7% yoy to 79 billion won in 4Q 2014. For FY 2014, the company delivered 4.7 trillion won in sales (+8.1% yoy), and 511 billion won in operating profit (+2.9% yoy).