Press Release

LG Household & Health Care reports record high quarterly earnings.Sales 1.6tr won (+5.4% yoy), Operating Profit 260bn won (+11.3% yoy)

Date 2017.04.28

April 28, 2017 – In 1Q 2017, LG Household & Health Care, Ltd. (CEO: Suk Cha) delivered the highest quarterly earnings. Company reported 1.6tr won in sales (+5.4% yoy) and 260bn won in operating profit (+11.3% yoy).

 

There have been various difficulties including global economic crisis, domestic economic downturn from Sewol Ferry incident, strengthened regulations and negative impact from MERS. However the company successfully delivered growth from both sales and operating profit every year by building a balanced business portfolio and continuously expanding business based on each unit’s expertise.

 

Sales has increased for forty-seven consecutive quarters since 3Q 2005, and operating profit increased for forty-eight quarters since 1Q 2005. Both sales and operating profit have delivered continuous growth for 12 years.

 

In Beautiful (cosmetics), sales increased 7.2% yoy to 854 bn won, and operating profit increased 12.4% yoy to 177bn won. Operating profit margin improved by 1.0%p from high growth in Luxury Cosmetics. Luxury Cosmetics increased 14% yoy, and its sales contribution increased to 70%.

 

In Healthy (household goods), sales increased 2.7% yoy to 430 bn won, and operating profit increased 1.2% yoy to 55 bn won. In addition, domestic market share of six major categories increased by 1.8%p to 38.3%

 

In Refreshing (beverages), sales increased 4.1% yoy to 316 bn won, and operating profit increased 28.4% yoy to 28 bn won. Due to brand and channel mix improvement, operating profit increased significantly.