April 27, 2024
LG
LG Household & Health Care profits hit record
[THE INVESTOR] Personal care product manufacturer LG Household & Health Care said on Jan. 24 that it saw a record-breaking fourth quarter in 2016 with 1.5 trillion won ($1.28 billion) in sales and 178 billion won in operating profits.
The nearly 10 percent rise in sales and 20 percent rise in operating profits continues a trend of consecutive growth for the company since 2005.
Approximately half of the company’s sales, or 798 billion won, came from the cosmetics category. LG H&H continued to see strong sales of its cosmetics brands such as luxury brands Whoo and Su:m 37 from Chinese shoppers despite continuing tension surrounding the deployment of the Terminal High Altitude Area Defense anti-missile system in Korea, which the Chinese government opposes.
Cosmetics grew 14.2 percent on-year in sales and 23.1 percent in operating profits. In particular, luxury cosmetics sales grew 40 percent on-year in 2016 to make up 69 percent of all cosmetics sales. Over the course of the year, LG H&H saw a 28.8 percent increase in operating profits, reaching 881 billion won and breaking 6 trillion won in sales.
LG H&H’s other sectors showed lower levels of growth. Household goods sales grew 6.8 percent to 362 billion won and operating profits rose 16.6 percent to 28 billion won. In the beverages category, sales grew 2.1 percent to 297 billion won, and operating profits 7.2 percent to 14 billion won.
Although the uncertainty surrounding Korea’s relationship with China could have a negative impact on cosmetics, LG H&H’s strongest category, the company should maintain profitability in 2017 with a “product portfolio centered on luxury cosmetics,” wrote analyst Lee Seung-uk for Hanwha Investment & Securities.
By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)
The nearly 10 percent rise in sales and 20 percent rise in operating profits continues a trend of consecutive growth for the company since 2005.
Approximately half of the company’s sales, or 798 billion won, came from the cosmetics category. LG H&H continued to see strong sales of its cosmetics brands such as luxury brands Whoo and Su:m 37 from Chinese shoppers despite continuing tension surrounding the deployment of the Terminal High Altitude Area Defense anti-missile system in Korea, which the Chinese government opposes.
Cosmetics grew 14.2 percent on-year in sales and 23.1 percent in operating profits. In particular, luxury cosmetics sales grew 40 percent on-year in 2016 to make up 69 percent of all cosmetics sales. Over the course of the year, LG H&H saw a 28.8 percent increase in operating profits, reaching 881 billion won and breaking 6 trillion won in sales.
LG H&H’s other sectors showed lower levels of growth. Household goods sales grew 6.8 percent to 362 billion won and operating profits rose 16.6 percent to 28 billion won. In the beverages category, sales grew 2.1 percent to 297 billion won, and operating profits 7.2 percent to 14 billion won.
Although the uncertainty surrounding Korea’s relationship with China could have a negative impact on cosmetics, LG H&H’s strongest category, the company should maintain profitability in 2017 with a “product portfolio centered on luxury cosmetics,” wrote analyst Lee Seung-uk for Hanwha Investment & Securities.
By Won Ho-jung/The Korea Herald (hjwon@heraldcorp.com)
