LG H&H Q1 Operating Profit Down 16.9%
- Chaileedo Press
- May 4, 2023
- 2 min read
LG H&H, the South Korean consumer goods company under LG Corporation, released its 2023 Q1 result. LG H&H reported 1684 billion ($1.27 Billion) Korean won in sales in Q1, with an increase of 2.4%.
LG H&H, the South Korean consumer goods company, under LG Corporation, has released its financial results for the first quarter of 2023. According to the report, LG H&H generated sales of 1684 billion Korean won ($1.27 billion) during this period, reflecting a growth of 2.4% compared to the same quarter in the previous year. The company reported 146 billion Korean won ($110.32 million) in operating profit, down 16.9% due to overall cost headwinds, including increased fixed costs.
In terms of geographic region, LG H&H domestic sales reached 1,184 Korean won in Q1($894.63 million), saw growth of 4.2% compared to 2022 Q1. While overseas sales decreased by 1.7% to 500 billion Korean won ($377.8 million), accounting for 30% of the company sales.
China and Japan sales reached 193 billion Korean won ($145.83 million) and 90 billion Korean won ($68 million), down 14.1% and 12.8% compared to 2022 Q1, respectively. While China accounted 11% of LG H&H total sales.
In terms of business segments, Beauty business segment sales increased by 0.3% to 702 billion Korean won ($530.43 million) and operating profit decreased by 11.3% to 61 billion Korean won ($46.09 million) in Q1. LG H&H said beauty sales were flat due to delayed consumption recovery in China. DFS channel reported double-digit sales growth due to low base effect, while China onshore business reported double-digit drop in sales.
HDB business segment sales reached 563 billion Korean won ($425.4 million), with an increase of 1.9%. LG H&H pointed out that HDB sales growth was led by strong sales performances of Oral Care (‘Perioe’, ‘Euthymol’) and ‘Physiogel’ in Daily Beauty. HDB strengthened portfolio of functional products by launching new products, including hair loss symptom relief shampoo ‘Dr. Groot’ Density Intensive Care and whitening toothpaste & whitening booster for ‘Euthymol’.
LG H&H appointed Jung Ae Lee as the representative director and new CEO. LG H&H also released its key business strategies, including Strengthen Brand Portfolio such as enrich ‘Whoo’ brand product lineup, rebuild brand ‘Sum37°‘ / ‘O HUI‘.LG H&H said the company will also focus on expanding overseas business by improving the competitiveness of luxury brands in China and reinforcing North America onshore business capacities.
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