LG Household & Health Care reports the Highest Half-year Result

LG Household & Health Care, Ltd. posted the highest half-year result Ii the first half of this year. Its sales increased 1.9% yoy to 3.1 trillion won (US$2.7 billion), operating profit increased 7.3% yoy to 492 billion won (US$442 million), recurring profit increased 9.6% to 466 billion won (US$419 million), and net profit increased 9.0% yoy to 349 billion won (US$314 million).

Despite the ongoing sluggish domestic economy and a sharp decline of inbound traffic from China, the balanced portfolio of beauty, Health and refreshing products, and the focus on luxury cosmetic business led to the highest half-year earnings in its history.

In the beauty sector, the sales increased 1.2% yoy to 1.64 trillion won (US$1.47 billion), and operating profit increased 5.0% yoy to 325 billion won (US$292 million). Even though travel retail was directly impacted by sharp decline of inbound traffic from China, China on-shore luxury cosmetics business grew 75% and helped to offset the negative impact.

In the healthcare sector, the sales increased 1.4% yoy to 804 billion won (US$723 million), and operating profit increased 2.1% yoy to 94 billion won (US$84 million). Overall sales was maintained at similar level to last year, but continuous efforts to introduce differentiated premium products helped to gain market share by 1.2%p to 37.1%

In refreshing (beverages) sector, the sales increased 4.2% yoy to 692 billion won (US$622 million), and operating profit increased 28.2% yoy to 73 billion won (US$65 million). Carbonated drinks continued to grow, led by Coca-Cola,, and Sprite. In Non-Carbonated drinks, Seagram’s, Crushed Pear Juice, and Toreta recorded strong results.