LG Household & Health Care announced on November 3 that its consolidated operating profit for the third quarter of this year reached 70.4 billion won, a 52.4% increase compared to the same period last year. Sales during the same period decreased by 0.2% to 1.5774 trillion won.
The company excluded the performance of its North American subsidiary, The Avon Company, from September following its sale. The beauty business reduced its losses due to the recovery of duty-free channels and improved efficiency in offline stores.
Overseas sales in the third quarter fell by 12.5% year-on-year to 432.3 billion won. Sales in North America decreased by 12.5% to 135.5 billion won, but excluding Avon, there was an approximate 5% increase. Sales in China dropped by 21.1% to 115.1 billion won as the restructuring of online operations continued.
Sales in the beauty business decreased by 0.3% year-on-year to 660.8 billion won, with an operating loss of 10.9 billion won, reflecting a reduction in losses. The brand The History of Whoo returned to growth due to increased duty-free sales, while major brands such as Dr. Groot, Dominas, Yusimol, and VDL also experienced growth.
LG Household & Health Care plans to enhance product competitiveness through its industry-leading research and development capabilities in the third quarter. The History of Whoo held an overseas event to showcase its skin aging management technology applied to the 'Bi-Chup NAD Power Ampoule.' Yusimol launched the 'Whitening Purple Corrector Serum Toothpaste,' combining whitening ingredients with serum formulation.
Dr. Groot entered over 400 offline stores of the U.S. beauty retailer Sephora in August. In September, it participated in the 'K-Expo' held in Mexico alongside The Face Shop, seeking to expand into the Latin American market.
Sales in the Home Care and Daily Beauty (HDB) segment increased by 3.8% year-on-year to 419.2 billion won, while operating profit decreased by 3.1% to 31 billion won. Although sales grew across major online and offline channels, operating profit declined due to increased investments in product development and brand marketing.
In the beverage segment, Refreshment, sales fell by 3.1% year-on-year to 497.4 billion won, with operating profit down 19.9% to 50.3 billion won. The decline in beverage demand, rising raw material costs, and intensified promotional competition impacted results.
An LG Household & Health Care official stated, "We are focusing on nurturing strategic brands based on differentiated product competitiveness grounded in scientific research and expanding new growth opportunities in the global market. We will continue to strengthen our product innovation and business competitiveness to establish a foundation for mid- to long-term growth."
Additionally, LG Household & Health Care's board of directors decided to acquire the remaining 25% stake in Viva Wave, the operator of the color cosmetics brand Hince. This decision follows the stock purchase agreement made during the acquisition in 2023, and upon completion of the additional purchase, LG Household & Health Care will secure 100% ownership of Viva Wave. The company plans to support Hince's brand identity while fostering mid- to long-term growth and international expansion.
LG Household & Health Care is undergoing a restructuring focused on its beauty business. The organization has been restructured into five divisions: Luxury Beauty, Derma & Contemporary Beauty, Neo Beauty, Cross-Category Beauty, and HDB, to enhance global operations centered on brand value.
* This article has been translated by AI.
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