On April 25th, LG H&H released its financial report for the first quarter of 2024. The report indicates that the company’s sales for the first quarter amounted to 1.729 trillion Korean won, up 2.7% year-on-year, with an operating profit of 151 billion Korean won, a 3.5% increase year-on-year.
In terms of regional sales, LG H&H saw growth in performance in South Korea, China, and Japan during the first quarter, except for North America. Among these, China experienced the highest growth, with sales increasing by 9.9% to 213 billion Korean won. Other regions saw a 6.3% increase to 86 billion Korean won, with Japan and South Korea recording increases of 3.6% and 2.7%, to 93 billion Korean won and 1.214 trillion Korean won, respectively. Sales in North America reached 122 billion Korean won, a 10.9% decrease year-on-year.
Looking at the divisions, the Beauty division recorded sales of 741 billion Korean won in the first quarter, up 5.6% year-on-year, with an operating profit of 63 billion Korean won, up 3.1% year-on-year. LG H&H attributed the growth in this division’s sales to the launch of new products under The Whoo brand and domestic sales channels in South Korea. In the first quarter, sales in duty-free shops declined, while online sales in China showed significant growth in the single digits. Additionally, both online channels and H&B sales experienced growth due to increased customer demand.
Sales for the Home Care & Daily Beauty division in the first quarter amounted to 553 billion Korean won, a 1.7% decrease year-on-year, with an operating profit of 35 billion Korean won, an 8.3% increase year-on-year. LG H&H noted that despite the growth of premium brands, sales declined due to the restructuring of overseas operations. Sales of major brands such as Physiogel, Dr. Groot, and Euthymol continued to grow. The increase in operating profit was attributed to a favorable product mix and cost reductions resulting from restructuring.
In the financial report, LG H&H stated that by increasing marketing efforts, the brand value of its online channels in China has significantly improved. Brand value indices on platforms such as Tmall and Douyin both achieved triple-digit growth. Furthermore, through enhanced collaboration with more Key Opinion Leaders (KOLs), particularly on the Douyin platform, online sales of the brand also saw significant improvement.
