■ In the second quarter, sales reached 234.7 billion and the company’s operating profit amounted to 14.5 billion won. Its operating margin improved 26.5% compared to the same period in the previous year.

■ Overcoming last year’s sluggish sales performance, the company achieved a sharp rebound with 10% operating profit growth in the first quarter as compared to the previous year.

▣ As for its business performance in the second quarter, LG H&H announced that it achieved 234.7 billion won in sales and 14.5 billion won in operating profit. Although sales had dropped 4.9% compared to the same period in the previous year, its operating profit has increased 18.9% and its operating margin has also improved by 26.5%.

▣ Accordingly, LG H&H’s sales and operating profit for the first half of this year are 496.6 billion won and 40.1 billion won, respectively. Sales have declined 4.4% year-to-year while the operating profit has grown by 14.4%.

▣ LG H&H explained that the short-term decline in sales may be attributable to streamlining and reorganization efforts in overseas business activities and in brands as a whole.

▣ On the other hand, the growth in operating profit is due mainly to improved profitability. By focusing on six core product groups (toothpaste, shampoo, soap, laundry/dishwashing detergents, fabric softeners) in household goods and high-end cosmetics, their share of sales have increased by 9% and 35% in these categories, respectively, compared to the first half of the previous year.

▣ By business sector, in the case of household goods, the divestiture of its wholesale logistics division, brand renewal and the discontinuation of OEM exports resulted in a decline in sales. However, a focused strategy for core product groups has improved profitability, and the company’s operating profit has grown by 16% compared to the previous year.

▣ In the case of the cosmetics sector, the number of brands was boldly reduced and sales efforts were focused on high-end products such as OHUI and WHOO. As a result, sales of these brands have increased 59% compared to the first half of the previous year. Their share in a direct-selling channel has also soared and has served as an opportunity to lay a solid foundation for the future growth of its cosmetics business.

▣ LG H&H announced that based on business performance in the first half it plans to augment its operating profit forecast for this year to 75.1 billion won, which represents 38% growth over the preceding year. At the beginning of the current year, operating profit was estimated at 66 billion won.