Press Release

LG H&H reports all-time high for second quarter results in 2Q 2013; net sales reached 1.1 trillion won and operating profit reached 120 billion won. Versus 2Q 2012, net sales grew +9.6 and operating profit grew +14.4%.

July 23, 2013 - LG Household & Health Care, Ltd. (CEO: Suk Cha) reported 1.1 trillion won in sales (+9.6% yoy), and 120 bn won in operating profit (+14.4% yoy). Sales, operating profit, and net profit reached all-time high for second quarter results.

Compared to last year’s second half, 1H 2013 sales increased to 2.1 trillion won (+10.5% yoy), and operating profit increased to 266 bn won (+26.3% yoy). Sales exceeded 2 trillion won for the first time, and both sales and operating profit reached all-time high half-a-year results.

In household goods, sales increased 16% yoy to 331 bn won and operating profit increased 24% yoy to 26 bn won despite of continued soft economic conditions in Korea. The total market share for 6 major categories increased to 34.4% (+1.0%p yoy).

In cosmetics, sales increased 10% yoy to 415 bn won and operating profit increased 19% yoy to 60 bn won with robust growth of new brands. TheFasceShop delievered 18% sales growth, and overseas sales reached to 25 bn won (+40% yoy). Oversease business sales grew 43% yoy to 81 bn won due largely to a solid growth of TFS and new business, Everlife. Especially, China and Japan delivered fast yoy growth of 52%.

In addition, TFS acquired ‘Fruits & Passion’ in Canada for expansion in North America. It will be expanded in Canada and in America by strengthening its product portfolio with more personal care products from ‘BEYOND’. At the same time, it will be expanded to well-established Asian market through experience of TFS.

In beverage, sales increased 4% yoy to 329 bn won, and operating profit increased to 34 bn won with market share reaching 25.6% (+0.7%p yoy). Carbonated beverage sales increased 10% yoy due to ‘Coca-Cola’ with diversified packages, ‘Fanta’ and ‘Sprite’. In non-carbonated beverage, coffee showed steady growth, and a new brand ‘Mate Tea’ is well-received in the market for its new healthy drink concept.