Q2 Business Performance and Sales of LG Household & Health Care in 2022

Q2 Sales Performance

In Q2 of 2022, LG Household & Health Care reported a year-on-year sales decline of 7.9% to 1.8627 trillion won, alongside a 35.5% decrease in operating profit to 216.6 billion won. However, compared to the first quarter, there was a sales improvement of 21.9% and a 35.2% increase in operating profit.

Who is LG Household & Health Care?

LG Household & Health Care, a major competitor to AmorePacific in Korea, is known for its multitude of popular brands such as O HUI, SUM37, Vonin, THE FACE SHOP, and CNP, starting with the brand WHOO in 2003. Apart from the beauty industry, the company also ventures into beverages, health foods, and household goods.

Factors Impacting Performance

China's lockdown policy, which began in late March of the previous year, and the hike in raw material prices due to the Ukraine crisis, have been pinpointed as major contributors to the challenging growth of sales and operating profit.

With the resurgence of COVID-19, several cities in China, including Shanghai, were put under lockdown, with Beijing and most other cities facing similar control measures. This resulted in curfews, store closures, and port shutdowns, significantly impacting businesses in China during the second quarter.

Overcoming the Challenges

Despite the adverse circumstances, LG Household & Health Care persevered by participating in the "6.18 Shopping Festival" with WHOO, one of their leading brands, even amid economic decline due to the enforcement of the "Zero Corona" policy. The company secured the top sales position in the beauty sector of emerging platforms Douyin and Kuaishou.

Additionally, by launching Freshian, a vegan makeup brand, the company is broadening its eco-friendly product portfolio and planning for opportunities to enhance performance by renewing the efficacy and differentiating the ingredients in Dr. Groot and Dr.Belmeur.

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