Press Release

October 25, 2016 – In 3Q 2016, LG Household & Health Care, Ltd. (CEO: Suk Cha) delivered the highest quarterly earnings. Company reported 1.6tr won in sales (+12.7% yoy) and 244bn won in operating profit (+28.4% yoy).

Despite the uncertainties in the market, such as geopolitical risk from THAAD, Cosmetics, Household Goods, and Beverage outperformed the market and exceed 1.5tr won in sales and 200bn won in operating profit for three consecutive quarters.

Cosmetics business, especially Luxury cosmetics, led the total sales which were 742bn won (26.5% yoy) and operating profit of 131bn won (60.0% yoy).

Sales has increased for forty-five consecutive quarters since 3Q 2005, and operating profit has increased for forty-six quarters since 2005. Both sales and operating profit have delivered continuous growth for more than 11 years.

[3Q 2016 Results by Business]

In cosmetics, sales increased 26.5% yoy to 742bn won, and operating profit increased 60.0% yoy to 131bn won. Operating profit margin improved to 17.7% (+3.7%p) from the previous year due to high growth in Luxury Cosmetics.

‘Whoo’,’su:m’ and other luxury cosmetics grew 44% compared to the previous year, and its sales contribution within Cosmetics was 68%. DFS sales grew over 80% yoy.

In China, ‘Whoo’ counters grew up to 150 and ‘su:m’ counters, which target 15 for end of this year,
were 6.

In household goods, sales increased 1.6% yoy to 439bn won, and operating profit increased 5.8% yoy to 68bn won.

Sales of six major categories increased 4% 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.

Eco-Friendly and premium products such as ‘Organist’, ‘ON:THE BODY’, ‘Saffron Flower Vinegar’ and “Han•Ip Natural Baking Soda’ were well accepted and made high growth in the market.

In beverage, sales increased 3.9% yoy to 383bn won, and operating profit increased 2.2% yoy to 45bn won. ’Coca-Cola’ and ‘Sprite’ continued to make significant growth and sales of carbonated drinks increased 6%. Non-carbonated drinks also grew 2% due to ‘Powerade’ and ‘Seagram’s’ growth.