LG H&H said on the 28th that its preliminary fourth-quarter results last year came to 1.4728 trillion won in revenue and an operating loss of 72.7 billion won. Revenue fell 8.52% from a year earlier, and the company swung to a loss.
Full-year results last year were 6.3555 trillion won in revenue and 170.7 billion won in operating profit. Those were down 6.7% and 62.82%, respectively, from a year earlier.
In the fourth quarter last year, the beauty institutional sector's revenue fell 18% on-year to 566.3 billion won. The operating loss was 81.4 billion won, a swing to the red.
As the company continued to overhaul distribution channels, including adjusting duty-free volumes to improve brand soundness, large one-off expense such as voluntary retirement in the fourth quarter weighed on results. Full-year revenue fell 16.5% to 2.35 trillion won, and the operating loss was 97.6 billion won.
In the home care (HDB) institutional sector, fourth-quarter revenue and operating profit were 523 billion won and 18.7 billion won, respectively. Revenue rose 2.9% from a year earlier, while operating profit fell 5.5%. Centered on Dr. Groot and Usmore, the company expanded marketing activities to widen customer touchpoints and broadened offline channels in overseas markets such as North America and Japan, boosting revenue.
However, operating profit decreased due to one-off expense related to expanding marketing for premium brands and streamlining the workforce. Full-year revenue was 2.2347 trillion won, and operating profit was 126.3 billion won, up 2.8% and 3.1%, respectively.
In the beverage (Refreshment) institutional sector, fourth-quarter revenue was 383.5 billion won, down 6.7% from a year earlier. The operating loss was 9.9 billion won, a swing to the red. While key brands such as Coca-Cola Zero and Monster Energy continued to grow, the domestic economic slump overlapped with the seasonal off-peak period, sending both fourth-quarter revenue and operating profit into decline. Full-year revenue was 1.7707 trillion won and operating profit was 142 billion won, down 2.9% and 15.5%, respectively, from a year earlier.
LG H&H said that despite a difficult business environment, it is attempting various changes to turn results around. Chief Executive Lee Seon-ju of LG H&H set this year's management goal as "Science Driven Beauty & Wellness Company" and pledged single-digit revenue growth.
In particular, the company plans to strategically nurture high-growth digital commerce and health and beauty (H&B) stores to secure a foundation for growth, while also strengthening its push into growing overseas markets such as North America and Japan.
An LG H&H official said, "We will focus on nurturing major brands centered on high-growth channels and regions," adding, "We will advance our digital marketing strategy to deliver a differentiated experience to customers."