Press Release

LG H&H, reports record high sales and operating profit in 1Q 2016; Net sales of 1.5 trillion won and operating profit of 234 billion won represent yoy growth rate of  +16.7% and +30.9% respectively.

April 26, 2016 - LG H&H Co., Ltd. (CEO: Suk Cha) reported 1.5 trillion won in sales (+16.7% yoy), and 234 billion won in operating profit (+30.9% yoy) representing historical highs. This result surpassed the previous highest sales by 133 billion won and operating profit by 43 billion in 3Q 2015.

All three business units outperformed the market growth. For operating profit, all three business units grew more than double digit growth percentage year-over-year; Beautiful(Cosmetics) 39.5%, Healthy(Household goods) 11.8%, and Refreshing(Beverage) 28.0%.

Beautiful sales increased 25.9% yoy to 797 billion won, and operating profit increased 39.5% yoy to 157 billion won. Operating profit margin improved to 19.7% (+1.9%p) from the previous year.

Luxury cosmetics sales increased 39% yoy from strong growth of major brands. The contribution came from the traditional Korean royal beauty brand ‘Whoo’ which grew 47% yoy and naturally fermented cosmetic brand ‘su:m’ grew 105% backed by strong demand from Chinese consumers.

Healthy sales increased 6.5% yoy to 419 billion won, and operating profit increased 11.8% yoy to 54 billion won due to steady growth in both personal care and home care. Operating profit margin improved to 12.9% (+0.6%p) from the previous year.

Refreshing sales increased 10.1% yoy to 304 billion won, and operating profit increased 28.0% yoy to 22 billion won. Operating profit margin improved to 7.3% (+1.0%p) from the previous year. Sales of both carbonated and non-carbonated drinks increased, and the market share also improved by 0.7%p to 30.8%.