Press Release

In Q1, 269.9 billion won in sales and 31.1 billion won in operating profit

An 11.5% operating margin, the highest since 2002, thanks to increased sales of premium products, including OHUI and Whoo Sales up by 3.1% despite end to direct sales in cosmetics

Regarding its first quarter performance, LG H&H announced it had achieved 269.9 billion won in sales and 31.1 billion won in operating profit. Compared to the same period in the previous year, sales were up 3.1% while operating profit increased by 21.4%.

Thanks to the growth in sales of premium products, including OHUI, Whoo and Beyond, LG H&H achieved an operating margin of 11.5%, its highest since the year 2002.

Sales continued to increase despite impeding factors such as the removal of inventories at cosmetic specialty shops, the end to direct sales in cosmetics and the shutdown of household goods agencies.

As for each business sector, the household goods division achieved 182.9 billion won in sales and 21.6 billion won in operating profit. Its operating margin was 11.8%, which is the highest Q1 figure since 2002.

These positive figures are attributed to increased sales in premium products, including new products such as Todian (diaper), Brestle (fabric deodorant) and Beyond (body care products), and also to improved profitability from curbing product discounts.

In cosmetics, sales increased by 8.6% to 88.2 billion won and the operating profit soared to 9.5 billion won, up an incredible 82.7% from the previous year. The operating margin also rose 4.4%p to 10.8%.

LG H&H explained that although there were some factors which would cause sales to decline, such as the removal of inventories at specialty shops and returning the stock of poor-performing products, demand seemed focused on premium brand cosmetics, including OHUI and Whoo, and sales of these brands soared by 63%, up from last year’s 25.4 billion won to 41.3 billion won. As a result, sales as well as overall profitability improved.