LG Household & Health Care reported Q2 operating profit of 102.8 billion won, an 87.5% year-over-year increase that exceeded market expectations, driven by North America-centered global business expansion. Revenue reached 1.6574 trillion won, up 3.3% from the same period last year. The earnings growth was fueled by North America sales of 205.8 billion won—a 47.3% surge that marked the first time the region surpassed China sales since the company's independent entity split, while China revenue declined 5.0% to 176 billion won.
LG Household & Health Care Reports Q2 Operating Profit of 102.8 Billion Won
LG Household & Health Care disclosed provisional consolidated results for Q2 on the 29th, showing revenue of 1.6574 trillion won and operating profit of 102.8 billion won. Both figures increased 3.3% and 87.5% respectively compared to the same period last year. The results exceeded market consensus, which had projected revenue of 1.596 trillion won and operating profit of 71.5 billion won based on forecasts from four major domestic securities firms compiled by Yonhap Infomax within the past month. The company stated that even excluding one-time factors such as U.S. tariff refunds that temporarily boosted performance, operating profit still increased year-over-year.
North America Sales Surpass China for First Time at 205.8 Billion Won
Overseas sales in Q2 reached 584.5 billion won, up 12.6% from the same period last year, accounting for 35% of total company revenue. North America sales totaled 205.8 billion won, a 47.3% increase, while China sales declined 5.0% to 176 billion won. This marked the first time North America revenue exceeded China revenue since LG Household & Health Care split into an independent legal entity. The regional shift reflects the company's successful expansion in North American markets across multiple product categories.
Cosmetics Segment Returns to Profitability with 44.4 Billion Won Operating Profit
The cosmetics division recorded Q2 revenue of 818.4 billion won, up 3.9% year-over-year, and operating profit of 44.4 billion won, returning to profitability. Major brands including Dr.GROOT, YOUTHSOME, Dominance, and HINCE drove growth across domestic and international online and offline channels. The segment's turnaround reflects strengthened brand positioning and channel diversification strategies.
Household Goods Operating Profit Rises 23.1% to 22.3 Billion Won
The household goods division generated Q2 revenue of 377.6 billion won, up 5.5% from the same period last year, with operating profit of 22.3 billion won, a 23.1% increase. Strong sales of differentiated functional products through cultivated domestic channels including online platforms and Costco drove the performance improvement. The segment benefited from consumer demand for premium household care products with specialized features.
Beverage Segment Operating Profit Declines 15.1% Amid Raw Material Cost Pressures
The beverage division posted Q2 revenue of 461.4 billion won, up 0.5% year-over-year, but operating profit fell 15.1% to 36.1 billion won. Revenue increased slightly as the company strengthened World Cup promotional activities amid continued weakness in domestic beverage consumption. However, operating profit declined due to increased cost burdens from rising raw material prices affected by the Middle East conflict.
LG Household & Health Care Announces Interim Dividend of 1,500 Won Per Share
LG Household & Health Care announced alongside its earnings release that it resolved to pay an interim dividend of 1,500 won per share for this year. The dividend decision reflects the company's commitment to shareholder returns following the strong Q2 performance.
Stock Closes at 263,000 Won with 2.94% Gain
LG Household & Health Care shares closed at 263,000 won on the day, up 2.94% from the previous session. The stock price increase followed the better-than-expected Q2 earnings announcement.
FAQ
What was LG Household & Health Care's Q2 operating profit?
LG Household & Health Care reported Q2 operating profit of 102.8 billion won, an 87.5% increase compared to the same period last year, exceeding market expectations of 71.5 billion won.
How did North America sales compare to China sales in Q2?
North America sales reached 205.8 billion won with a 47.3% increase, surpassing China sales of 176 billion won (which declined 5.0%) for the first time since LG Household & Health Care split into an independent legal entity.
Why did the beverage segment's operating profit decline despite revenue growth?
The beverage segment's operating profit fell 15.1% to 36.1 billion won due to increased cost burdens from rising raw material prices affected by the Middle East conflict, even though revenue increased 0.5% to 461.4 billion won through strengthened World Cup promotional activities.
