LG H&H (051900) Q1 2025 earnings summary

Executive summary

• 1Q 2025 sales reached 1,698bn KRW, down 1.8% year-over-year; operating profit was 142bn KRW, down 5.7% year-over-year.

• Net profit declined 8.5% year-over-year to 103bn KRW.

• Overseas sales grew 4.2% year-over-year, now accounting for 32% of total sales, with notable growth in Japan (+23.2%).

Financial highlights

• Gross profit decreased 5.3% year-over-year to 878bn KRW; SG&A expenses fell 5.2% to 736bn KRW.

• Operating margin was 8.4%, down 0.4 percentage points from the previous year.

• Cash and equivalents increased by 60bn KRW to 1,313bn KRW as of March 2025.

Segment performance

• Beauty: Sales fell 3.4% year-over-year to 708bn KRW; operating profit dropped 11.2% to 59bn KRW, impacted by declining DFS sales but offset by growth in Japan and online channels.

• HDB: Sales rose 2.2% year-over-year to 573bn KRW; operating profit increased 13.7% to 37bn KRW, driven by overseas demand and premium product launches.

• Refreshment: Sales declined 4.1% year-over-year to 416bn KRW; operating profit fell 10.8% to 47bn KRW due to weak domestic beverage demand and high raw material costs.