LG Household reports best third quarter despite pandemic
LG Household & Health Care reported its best third quarter ever, although its cosmetics sales declined.
The beauty company behind cosmetics brand The History of Whoo on Thursday reported 2.71 trillion won ($2.39 billion) in sales in the July-September period, up 5.4 percent on year. Its net profit rose 6.7 percent on year to 231.7 billion won, while operating profit increased 5.1 percent to 327.6 billion won.
“Despite the continued uncertainties from the Covid-19 pandemic and the intensified competition, sales and profit both increased compared to the same period last year on the improved brand competitiveness,” said the company in a statement Thursday.
“To survive the difficult [management] environment, a lot of competitors competed on price, but we maintained our position and minimized risks through the brand power and product competitiveness.”
Home care and daily beauty product sales drove growth as the beauty division staggered.
The beauty division’s operating profit slid 6.7 percent on year to 197.7 billion won, on 1.14 trillion won sales, which is down 1.5 percent on year.
The company sales at duty-free stores improved in the third quarter after dropping in the first half of the year. Duty-free accounts for a third of the beauty division’s sales.
Online sales from China during the promotional season helped the beauty business.
The home care and daily beauty division, which sells hair products and toothpaste, reported 508.8 billion won in sales, up 26.8 percent on year, while operating profit jumped 47.9 percent to 66.8 billion won during the same period.
Redesigning packaging for hair products, pushing online sales and environmentally friendly packaging, which appeals to younger people, helped raise the division’s earnings.
The refreshment division, which sells beverages like Coca-Cola, reported 15.1 percent on-year growth in operating profit to reach 63.2 billion won. Its sales rose 3.8 percent on year to 418 billion won.
The performance was helped by improved earnings from online and delivery channels, helped by not just the pandemic that has kept people at home, but also the unusually long rainy season this year.
BY JIN MIN-JI [email@example.com]