Cosmetics firm touts strong fourth quarterLG Household & Health Care says it has overcome global uncertainties to post record sales in the fourth quarter, led by strong overseas sales and cosmetics products sales.
The cosmetics and household goods company on Wednesday announced it reported 2.01 trillion won ($1.8 billion) sales during the September-December period, a 18.5 percent jump on-year. Its operating profit during the same period stood at 241 billion won, up 14.3 percent compared to the same period last year.
The company posted its largest operating profit in the first quarter of last year, when the figure was 322.1 billion won.
Combined sales last year totaled 7.69 trillion won, while LG Household & Health Care’s operating profit stood at 1.18 trillion won. Its net profit was 788.2 billion won, continuing a 15-year growth streak.
The company said it performed particularly well in Korea and Asian countries like China and Japan. Overseas sales grew by 48 percent last year. The company hopes to expand its influence in the North American market with last year’s acquisition of New Avon Company, a web-based beauty company.
Its beauty business was the biggest contributor to sales, reaching 4.75 trillion won, up 21.5 percent on-year. That division’s operating profit improved 14.7 percent to 897.7 billion won. Luxury cosmetics brands like Whoo and O Hui performed well, the company said. Annual sales of Whoo last year totaled 2.58 trillion won. CNP also showed strong growth with its annual sales having reached 100 billion won.
Sales within the company’s Home and Personal Care division inched up 1.8 percent to 1.49 trillion won, while its operating profit increased 4.6 percent to 126 billion won.
Sales of the company’s beverage business were up 5.1 percent on-year to 1.45 trillion won. Its operating profit rose 12.1 percent on-year to 152.7 billion won, on back of its sales of Coca-Cola, Sprite and Powerade. The company has the right to produce and sell the drinks in Korea.
LG H&H’s luxury brand products are sold at department stores in China.
“We don’t operate shops on the streets in China, and sell mid-low priced products online,” said a spokesperson for LG H&H. “Luxury brands like Whoo and Su:m37 are less affected by the withered consumption. But we are monitoring the possibility of continued withered consumption in the long term.”
BY JIN MIN-JI, MOON HEE-CHUL [firstname.lastname@example.org]
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