LG Household & Health Care announced on the 31st that its operating profit for the fourth quarter of last year recorded 128.9 billion KRW, a 46.5% decrease compared to the same period last year. Sales revenue fell 10.6% to 1.8078 trillion KRW.
LG Household & Health Care explained, "In the fourth quarter of last year, the domestic and international economic downturn and consumption slowdown affected the overall business," adding, "The beauty business experienced sluggish sales at duty-free shops and in the Chinese market due to the deteriorating market conditions and resulting consumption slowdown in China, while the HDB and Refreshment businesses continued sales growth driven by new product launches and strong sales of premium brands."
The beauty business recorded sales of 870.1 billion KRW in the fourth quarter of last year, down 23.7% year-on-year, and operating profit of 79.2 billion KRW, down 57.7%.
During last year's China Singles' Day event, the "Whoo" brand achieved first place on new online platforms such as TikTok and Kuaishou, newly entered based on high brand awareness, marking a significant achievement in diversifying online channels. However, LG Household & Health Care explained that the resurgence of COVID-19 in China affected sales in key channels such as the local Chinese market and duty-free shops.
During the same period, the HDB business in the household goods sector recorded sales growth of 5.0% to 526.5 billion KRW, while operating profit decreased by 6.7% to 18.9 billion KRW.
The Refreshment business in the beverage sector posted sales of 411.2 billion KRW, up 7.8%, and operating profit of 30.8 billion KRW, down 8.1%. Although it was a seasonal off-peak period, sales growth was driven by increased carbonated beverage sales in convenience stores and delivery channels due to the Qatar World Cup held in November last year. However, profitability improvement was difficult due to continued cost burdens from rising raw material prices.
Meanwhile, annual sales for last year recorded 7.1858 trillion KRW, down 11.2% year-on-year, and operating profit was 711.1 billion KRW, down 44.9%.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
