LG Household & Health Care Surpasses China in North American Sales for the First Time

LG Household & Health Care reported improved profitability in the second quarter of this year, driven by growth in its North American business and a return to profitability in its beauty division. For the first time since the company split, North American sales have surpassed those from China.

The company announced on July 29 that its consolidated operating profit for the second quarter reached 102.8 billion won, an increase of 87.6% compared to the same period last year. Revenue rose by 3.3% to 1.6574 trillion won, while net profit surged by 101% to 77.6 billion won.

Notably, international sales showed significant growth. Second-quarter overseas revenue was 584.5 billion won, a 12.6% increase year-on-year, accounting for 35% of total sales. North American sales alone reached 205.8 billion won, up 47.3%.

In contrast, sales in China fell by 5.0% to 176.0 billion won. This marks the first instance of North American sales exceeding those from China since LG Household & Health Care became an independent entity.

By division, the beauty segment reported sales of 818.4 billion won, a 3.9% increase, and operating profit of 44.4 billion won, returning to profitability. Key brands such as Dr. Groot, Yusimol, Dominus, VDL, and Hince contributed to this growth through both online and offline channels domestically and internationally.

The Home Care and Daily Beauty (HDB) division saw sales rise by 5.5% to 377.6 billion won, with operating profit increasing by 23.1% to 22.3 billion won, driven by strong sales of functional products in major channels like online platforms and Costco.

The Refreshment division reported a slight sales increase of 0.5% to 461.4 billion won, but operating profit fell by 15.1% to 36.1 billion won, impacted by weak domestic beverage consumption and rising raw material costs due to instability in the Middle East.

A company representative stated, "We will expand investments in high-potential markets and key channels to lead intelligent K-beauty based on scientific research."

Additionally, LG Household & Health Care's board of directors approved an interim dividend of 1,500 won per share, with the record date set for August 14 and payment scheduled by August 28.