Press Release

LG H&H reports net sales of 1.3 trillion won, and operating profit of 168 billion won for 2Q 2015. Versus 2Q 2014, net sales grew +14.8%, and operating profit grew +38.4%.

July 24, 2015 – In 2Q 2015, LG Household & Health Care, Ltd. (CEO: Suk Cha) reported the highest results for 2Q with sales of 1.3 trillion won (+14.8% yoy), and operating profit of 168 billion won (+38.4% yoy). Sales and operating profit of all three business divisions recorded solid growth despite MERS (Middle East Respiratory Syndrome) outbreak that started from end-May through (1) stable business portfolio consisting of cosmetics, household goods, and beverages, and (2) continuous risk management.

In 2Q 2015, Beautiful continued the high growth as in 1Q, with sales growth of 28.3% yoy to 596bn won, and operating profit growth of 50.9% yoy to 95bn won. Sales of prestige cosmetics increased 68% yoy from strong growth of cosmetics brands, ‘Whoo’, ‘SU:M’ and ‘belif’. From continuous high preference for the company’s cosmetics brands, DFS sales delivered 142% yoy growth.

In 2Q 2015, Healthy sales increased 8.2% yoy to 368bn won, and operating profit increased 27.4% yoy to 39bn won. Sales of major categories increased 18% yoy from premiumization of major products, and market share grew by 1.1%p to 34.3%. Profitability of Healthy division was greatly improved from lower input cost and premiumization of major categories.

In 2Q 2015, Refreshing sales increased 2.7% yoy to 347bn won, and operating profit increased 22.0% yoy to 34bn won. Carbonated drinks achieved 10% yoy sales growth from increase in sales of major brands including ‘Coca-Cola’, ‘Sprite’, and sparkling water, ‘Seagram’s’. Operating profit delivered high growth from (1) improvement in product mix as sales of carbonated drinks increased fast, and (2) continuous effort to lower cost.

Sales has increased for forty consecutive quarters since 3Q 2005, and operating profit has increased for forty-one quarters since 2005, excluding last year’s 1Q. Both sales and operating profit have delivered continuous growth for more than 10 years. In 1H 2015, total company delivered sales of 2.6tr won (+15.1% yoy), and operating profit of 346bn won (+38.7% yoy), and recorded the highest result in 1H.