Press Release

LG H&H, reports 2Q 2016 results: Net sales reached 1.6tr won, and operating profit reached 225bn won. Versus 2Q 2015, net sales increased +18.5%, and operating profit increased +34.1%.

July 26, 2016 – In 2Q 2016, LG H&H Co., Ltd. (CEO: Suk Cha) delivered the highest second-quarter earnings. Company reported 1.6tr won in sales (+18.5% yoy), and 225bn won in operating profit (+34.1% yoy). 
Total Company quarterly earnings continued to exceed 1.5tr won in sales and 200bn won in operating profit. Debt-to-equity ratio also improved for three consecutive years by 38%p (119%  81%), due to increased cash flow from strong profit growth.
Cosmetics, Household Goods, and Beverage delivered solid growth; and Luxury Cosmetics drove total company’s growth.
Sales has increased for forty-four consecutive quarters since 3Q 2005, and operating profit has increased for forty-five quarters since 2005. Both sales and operating profit have delivered continuous growth for more than 11 years. 
In 1H 2016, total company delivered the highest half-year result of all times; sales increased 17.6% to 3.1tr won and operating profit increased 32.4% yoy to 459bn won.

[2Q 2016 Results by Business]

In cosmetics, sales increased 33.1% yoy to 820bn won, and operating profit increased 55.1% yoy to 153bn won. Operating profit margin improved to 18.6% (+2.6%p) from the previous year due to high growth in Luxury Cosmetics. 
Luxury cosmetics sales increased 56% yoy and its sales contribution within Cosmetics was as high as 70% driven by strong growth of ‘Whoo’ and ‘su:m’.
In China, ‘Whoo’ sales grew 56% yoy and expanded its counters up to 140 and ‘su:m’ was introduced in department stores and online in April and May respectively. 
In household goods, sales increased 7.4% yoy to 374bn won, and operating profit increased 6.0% yoy to 37bn won. 
Sales of six major categories increased 9% yoy and the market share was 36.2% which was improved by 0.8%p due to steady growth in both personal and home care.
In beverage, sales increased 3.8% yoy to 360bn won, and operating profit increased 2.8% yoy to 35bn won. The market share improved by 0.5%p yoy to 30.4% by outperforming the market.