Press Release

LG H&H, reports FY 2015 results; Net sales reached 5.3 trillion won, and operating profit reached 684 billion won. Versus FY 2014, net sales increased +13.9%, and operating profit increased +33.9%.

January 26, 2016 – In 2015, LG H&H Co., Ltd. (CEO: Suk Cha) delivered the highest sales, operating profit, and net profit of all times; the company reported 5.3 trillion won in sales (+13.9% yoy), and 684 billion won in operating profit (+33.9% yoy). Despite unexpected difficulties such as MERS (Middle East Respiratory Syndrome), total company sales exceeded 5tr won for the first time from high growth in cosmetics, and stable growth in both household goods and beverage business. Beauty & Personal Care sales increased 21.4% yoy to 3.3 trillion won, and operating profit increased 33.5% yoy to 503 billion won.

In cosmetics, sales increased 25.2% yoy to 2.4 trillion won, and operating profit increased 43.2% yoy to 390 billion won. Luxury cosmetics sales grew 60% yoy from strong growth of major brands. ‘Whoo’ continued to deliver high growth in domestic DFS and local China market as it did last year, and delivered global sales exceeding 800bn won. In US, ‘belif’ was successfully launched through Sephora, and is currently sold at 85 stores in major cities. DFS channel that was impacted by MERS the most, delivered sales of 637bn won (+112% yoy) from strong growth in 1H 2015 and fast recovery since MERS.

In household goods, sales increased 6.3% yoy to 1.6 trillion won, and operating profit increased 16.1% yoy to 186 billion won. From growth in Personal Care, sales of 6 major categories increased 15% yoy. Market share also increased 0.5%p to 35.4%, further strengthening the company’s #1 position in the market. Together with continuous increase of overseas consumer’s interest in Personal Care, local China business took off with the launch of ‘ReEn Yungo’ last November.

In beverage, sales increased 5.2% yoy to 1.3 trillion won, and operating profit increased 37.5% yoy to 108 bn won. Operating profit margin improved to 8.4% (+2.0%p) from high growth of carbonated drinks. Market share also increased by 0.8%p to 29.7%. Carbonated drinks sales grew 9% yoy from continuous growth of ‘Coca-Cola’ and ‘Sprite’, and successful new products launches.

FY Sales and Operating Profit Trend (Unit:bn won)