LG Household net rises 10.5 percent in first quarter on year
LG Household & Health Care's net profit rose 10.5 percent to 258.8 billion won ($231 million) in the first quarter on year. Revenue was 2.37 trillion won, up 7.4 percent on year.
It was the company's most profitable first quarter ever.
LG Household has three divisions: beauty, home care and daily beauty, refreshment.
The company, with brands like The history of WHOO and O Hui, said sales of luxury cosmetics brands from abroad helped, but sales of products like hand sanitizers and masks "plummeted significantly."
LG Household & Health Care's beauty division generated 254.2 billion won in operating profit in the first quarter, up 14.8 percent on year. Its revenue grew 8.6 percent during the same period to 1.16 trillion won.
It was the first time the company reported growth in the beauty division since the pandemic broke out.
"Growth from inside and outside of Korea led despite the continued impact of the Covid-19 on the global cosmetics industry," said the company in a statement. "In particular, luxury brand products sold well abroad and sales via digital channels also helped."
Its home care & daily beauty division, which sells toothpaste and shampoo, generated 66.2 billion won in operating profit, up 1.4 percent on year. Its revenue was up by 8.6 percent to 520.7 billion won.
The company said demand for disinfection and other Covid-related products slid, but the demand for detergent and softener jumped "amid the spreading concerns about the virus in daily activities."
Operating profit of its refreshment business, which sells Coca Cola, was 50.1 billion, up 6.9 percent on year, on sales that inched up 2 percent to 357.5 billion won. New soft drinks contributed to the growth.
Amorepacific Group, which sells Sulwhasoo, Innisfree and Etude products, is scheduled to report first quarter earnings next week.
BY JIN MIN-JI [email@example.com]