LG H&H said on the 30th that its preliminary first-quarter results were sales of 1.5766 trillion won and operating profit of 107.8 billion won. Compared with a year earlier, sales fell 7.1% and operating profit fell 24.3%.
Net profit for the period came to 88.7 billion won, down 14.2%.
In the Beauty institutional sector, first-quarter sales were 771.1 billion won and operating profit was 38.6 billion won, down 12.3% and 43.2%, respectively, from a year earlier. Sales declined as the company continued to manage duty-free volumes and streamline offline stores, and operating profit also slowed as marketing investments expanded to secure mid- to long-term growth drivers.
However, flagship brands such as Dr. Groot, Usimol, Dominas and VDL performed well in global markets, driving overseas sales growth. In particular, in line with LG H&H's new vision, "Science Driven Beauty & Wellness Company," the company is strengthening brand competitiveness, and results are becoming visible in overseas online and offline channels.
Boosted by last year's North American online performance on Amazon and TikTok, Dr. Groot launched on the U.S. premium beauty multishop "Sephora" online in March and plans to enter all North American offline stores in August. "CNP" and "belif" are also strengthening consumer touchpoints by newly entering or expanding product lines at the largest U.S. cosmetics retailer, "Ulta Beauty."
In the Home Care & Daily Beauty (HDB) institutional sector, first-quarter sales were 397.9 billion won and operating profit was 25.4 billion won. Compared with a year earlier, sales fell 0.9% and operating profit fell 7.4%. Sales were solid in growth channels such as health and beauty (H&B) stores and online, but overall sales and profit inched down as offline market demand weakened.
The HDB institutional sector is seeking to strengthen competitiveness with "hero" products that apply differentiated ingredients and new technologies. The oral care brand "Perioe" released "Discovery of Enzymes," Korea's first high-fluoride enzyme toothpaste that applies enzyme residue technology. The body care brand "On the Body" is pursuing an expanded customer base by renewing and relaunching its hit product "Cotton Foot Let's Wash Feet Foot Shampoo," improving its ingredients and functions.
In the Refreshment institutional sector, first-quarter sales were 407.6 billion won and operating profit was 43.8 billion won, down 2.2% and 6.8%, respectively, from a year earlier. Profitability weakened as beverage consumption slowed and sales in traditional channels such as discount stores declined.
Coca-Cola Beverage plans to use global sporting events such as this year's FIFA World Cup to boost sales. "Coca-Cola" will hold a consumer experience event exhibiting the authentic World Cup trophy in Korea, and "Powerade" will roll out a World Cup special package, among other promotions.
An LG H&H official said, "The overhaul of domestic distribution channels, pushed aggressively since last year with a focus on duty-free, is gradually translating into results," adding, "Based on differentiated product competitiveness grounded in R&D, we will accelerate brand innovation and pursue strategic growth centered on global and digital markets."