Press Release

LG Household & Health Care Reports Record High 1Q Results
Sales 1.7tr won (+6.5% yoy), Operating Profit 284bn won (+9.2% yoy)

April 24, 2018 – In 1Q 2018,LG H&H Co., Ltd. (CEO: Suk Cha) delivered the highest 1Q results. The Company reported 1.7tr won in sales (+6.5% yoy) and 284bn won in operating profit (+9.2% yoy).

Despite slow recovery in number of inbound tourists and continued sluggish domestic demand, Luxury Cosmetics grew strong in both domestic and overseas markets, and led overall company sales and operating growth.

Sales has increased for fifty quarters since 3Q 2005, and operating profit has increased for fifty-two quarters since 1Q 2005, delivering continuous growth for thirteen years. Debt-to-equity ratio also improved by 20.7%p yoy to 57.0% from increased cash flow from profit growth.

Beautiful sales increased 12.1% yoy to 948bn won, and operating profit increased 20.1% yoy to 212bn won. Operating profit margin improved by 1.5%p to 22.4% due to growth in Luxury Cosmetics. Whoo’ sales grew 35% yoy from high growth in both domestic and overseas markets, and strengthened its position as Asia’s top luxury cosmetics brand. Next-generation brand, ‘su:m’ reinforced growth by expanding its premium line ‘Summa’. Overseas cosmetics sales increased 33% yoy, and especially China Luxury Cosmetics sales increased strongly by +89%.

Healthy sales decreased 4.5% yoy to 395bn won, and operating profit decreased 23.8% yoy to 42bn won. Faced with a mature and unpredictable domestic market, the company prioritized restructuring activities to enhance core capabilities rather than focusing on short term growth. While refraining from price competition and focusing on premium brand investment, Healthy solidified its #1 position with 36.6% M/S.

Refreshing sales increased 5.7% yoy to 317bn won, and operating profit increased 5.0% yoy to 30bn won. Both Carbonated and Non-Carbonated drinks continued to post solid sales growth, and resulted in 1.0%p increase in domestic M/S to 30.6%.