LG H&H has embarked on a management efficiency initiative in its beverage institutional sector, including the sale of its subsidiary, Haitai HTB.
According to industry sources on the 28th, LG H&H has selected Samjong KPMG as the lead manager and has begun efforts to streamline its beverage institutional sector, including the sale of Haitai HTB (formerly Haitai Beverage).
LG H&H's beverage institutional sector includes Haitai HTB and Coca-Cola. The beverage institutional sector recorded sales of 1.8244 trillion won and an operating profit of 168.1 billion won last year. Sales increased by 1% compared to the previous year, but operating profit fell by 21.9%.
Haitai HTB is a corporation that was fully acquired by LG H&H in 2010 and changed its name in 2016, producing products like Sunkist and Coco Palm. Haitai HTB's performance last year showed sales of 414 billion won and an operating profit of 3.6 billion won, down 1.3% and 74%, respectively, compared to the previous year.
However, LG H&H stated that the sale of Coca-Cola beverages has not been included in this management efficiency process.
A representative from LG H&H noted, "We are considering various measures to strengthen our business competitiveness and improve management efficiency, but no specific decisions have been made."