TV CF
VITAL GARDEN
Date 2023.07.27
LG H&H reports 1.8tr
won in Sales, 158bn
won in Operating Profit
- Sales and Operating Profit
decreased 3.0% yoy and 27.1% yoy, respectively
Jul 27, 2023 –
In 2Q 2023, LG H&H Co., Ltd. (The Company) reported 1.8tr won in sales (-3.0%
yoy), 158bn won in operating profit (-27.1% yoy).
The Company
sales decreased mainly due to Beauty¡¯s 8% yoy decline, while HDB and
Refreshment sales grew slightly yoy. Operating profit for the Company decreased
due to persistent cost pressure and expenses related to reorganization and
efficiency of domestic and US business.
[2Q 2023
Results by Business Segment]
¡ãBeauty business 2Q 2023 sales decreased 8.5% yoy to 781bn won
and operating profit decreased 24.9% yoy to 70bn won.
Despite positive growth in domestic channels, Beauty
sales decreased due to China¡¯s lagging consumption recovery. Whereas domestic
channels, such as department stores, H&B and etc., reported positive sales
growth, DFS channel reported double-digit drop in sales due to high base of 2Q
2022 and China onshore business reported single-digit decline in sales.
Operating profit for Beauty decreased due to slowing topline growth and reorganization
related costs. Beauty enhanced brand value with new product launches and major
Line renewals. New product launches included ¡®O HUI¡¯ Ultimate Fit Jean Cushion
and ¡®Glint¡¯ highlighter ¡®Peach Moon¡¯. ¡®Whoo¡¯ introduced Hwanyu Line renewal and
¡®Sum37¡Æ¡¯ presented ¡®Water-full¡¯ Line renewal.
¡ãHDB business 2Q
2023 sales increased 0.5% yoy to 546bn won and operating profit decreased 53.6%
yoy to 28bn won.
HDB sales slightly increased due
to Daily Beauty and online channel growth. Daily Beauty growth was driven by
strong performance of Premium brand ¡®Physiogel¡¯ and ¡®Euthymol¡¯. Online channel
sales grew as HDB enriched its live commerce contents in collaboration with
various e-commerce platforms. Operating profit, however, decreased due to
persistent cost headwinds and reorganization related costs. HDB augmented
product portfolio with new launches including ¡®Physiogel¡¯ CICA Line & Suncare
Lineup for the summer season and ¡®Veilment¡¯, ¡®Dr. Groot¡¯, & ¡®Himalayan Pink
Salt¡¯ Cooling Lineup.
¡ãRefreshment business
2Q
2023 sales increased 3.2% yoy to 481bn won and operating profit decreased 5.5%
yoy to 60bn won.
Refreshment sales grew due to strong demand for zero sugar and energy
drinks. While ¡®Coca-Cola Zero¡¯, ¡®Monster Energy¡¯ and ¡®Powerade¡¯ sales continued
to grow, operating profit decreased due to persistent cost related headwinds. Refreshment
launched unique marketing campaigns for new zero sugar beverages. ¡®Coca-Cola¡¯
released commercial song ¡®Zero¡¯ with NewJeans and introduced ¡®Coca-Cola Zero
Lemon¡¯ and ¡®Coca-Cola x NewJeans Special Package¡¯. Also, Refreshment presented
¡®Crush Pear Cider¡¯, a refreshing carbonated pear flavored beverage, to expand
on its sugar zero portfolio.