The South Korean consumer goods major announced that its sales and operating profit had returned to growth for first quarter (Q1) on April 25.
This is the first time LG H&H has reported positive sales figures since Q1 in 2023 while its operating profit showed growth for the first time since Q3 in 2021.
It reported that beauty sales increased by 5.6% to KRW741bn (USD538.9m) while operating profit grew 3.1% to KRW63bn (USD45.8m.)
This was attributed to the company’s efforts to renew The Whoo, its flagship prestige beauty brand, which accounts for the lion’s share of beauty sales at 52%.
The company embarked on a total rebranding by refining its strategic direction, enhancing the competitiveness of its products, and reinforcing brand communications.
New product innovations included its improved Cheongidan serum and Bichup serum. The latter was the first time the company applied its proprietary NAD+ ingredient.
According to the firm, sales of these products have been strong.
It highlighted that the brand also managed to grow by single digits in the soft China beauty market.
This was driven by The Whoo, which saw sales increase in China by double digits.
The beauty division also consists of brands such as The Face Shop, Belif, and CNP Laboratories.
In addition to The Whoo’s new product developments, the company also saw positive results from the introduction of Belif’s updated Aqua Bomb and Moisturising Bomb, as well as the introduction of CNP’s new sunscreen.
In the previous quarter, the beauty division recorded a sales decline of 23.7% to KRW664bn (USD482.8m) while operating profit fell by 90.8%. to KRW7bn (USD5.09m).
LG H&H chief executive Lee Jung-ae previously highlighted that LG H&H was in a critical phase in 2024.
“2024 should be a turning point year for our LG H&H, shedding the stagnation of the past two years and ushering in a new era of growth,” she said.
Mass brands dip slightly
On the other hand, Home Care & Daily Beauty sales decreased by 1.7% to KRW553bn (USD402,1m) but operating product increased by 8.3% to KRW35.4bn (USD25m).
This division comprises mainly of mass personal care products, including oral care brand Euthymol and hair care brand Dr. Groot.
It reported sales growth for brands such as Physiogel, Dr. Groot, and Peiroe with the launch of new products.
However, despite the growth of these brands, sales declined due to “overseas business reorganisation”, said the firm.
Aside from beauty and personal care, the company beverage business saw sales increase by 3.6% to KRW434bn (USD315.4m) while operating profit grew by 1% to KRW53bn (USD38.5m).
Overall, company-wide sales increased by 2.7% to KRW1.7287tn (USD1.257bn) and operating profit rose by 3.5% KRW151bn (USD109.8m) compared to the same period last year.
