LG H&H reported that its second-quarter performance showed sales of 1.6049 trillion won and operating profit of 54.8 billion won on the 31st. Compared to the same period last year, sales decreased by 8.8% and operating profit fell by 65.4%.
The company noted, "While the growth trend in North America and Japan continued, overall sales and operating profit decreased as economic recovery slowed."
In the second quarter of this year, the Beauty institutional sector recorded sales of 604.6 billion won and an operating loss of 16.3 billion won. Compared to the same period last year, sales decreased by 19.4%, and it turned to a loss.
Although the domestic health and beauty (H&B) shops and major channels like Amazon in North America and Japan continued to grow, the overall market competition intensified, increasing cost burdens. The company explained that performance declined as traditional channels like duty-free and direct sales restructured their business.
The HDB institutional sector recorded sales of 542.0 billion won and operating profit of 28.6 billion won in the second quarter. Compared to the same period last year, sales increased by 2%, while operating profit decreased by 7.1%.
Although domestic sales remained sluggish, strong overseas sales of premium brands like Dr. Groot and Youseemol drove revenue growth. However, operating profit decreased due to rising fixed costs and increased marketing investments.
The Refreshment institutional sector recorded sales of 458.3 billion won and operating profit of 42.5 billion won. This represents a decrease of 4.2% and 18.1%, respectively, compared to the same period last year. The overall demand for beverages fell due to consumption slowdown and weather impacts like the monsoon, compounded by high exchange rates and rising raw material prices affecting performance.
LG H&H decided at a board meeting to implement the 'interim dividend and share buyback plan,' announced last November as a part of its value improvement strategy. The interim dividend has been set at 1,000 won for both common and preferred shares, which will be paid to shareholders registered as of Aug. 18 by Aug. 29.
LG H&H also decided to scrap 315,738 shares of common stock it holds on the 14th of next month. Currently, LG H&H owns 958,412 shares of common stock and 3,438 shares of preferred stock. After the scrapping, the remaining shares will be entirely scrapped by 2027 as part of the value improvement plan.
A representative of LG H&H stated, "Improving the fundamental corporate value by ensuring growth in current operations and acquiring new growth engines through M&A is a top priority," adding, "To ensure future growth, we are maintaining the same active stance on M&A as in the past."