LG H&H (051900) Q2 2024 earnings summary

Executive summary

• Q2 2024 consolidated revenue was ₩1.76 trillion, down 2.7% year-over-year, with operating profit up 0.4% to ₩158.5 billion and net income up 11.2% to ₩107.2 billion.

• H1 2024 revenue was nearly flat at ₩3.49 trillion, with operating profit up 1.9% and net income up 14.3% year-over-year.

Financial highlights

• Q2 operating margin improved to 9.0% from 8.7% a year ago.

• H1 operating margin rose to 8.9% from 8.7% year-over-year.

• Q2 overseas sales accounted for 30% of total, with China up 5.5% and North America down 16.6%.

• Cash and equivalents decreased to ₩501.6 billion as of June 2024, down from ₩910.3 billion at year-end 2023.

Segment performance

• Beauty Q2 sales fell 2.7% year-over-year, but operating profit rose 4.0% on cost controls and brand growth in China and online channels.

• HDB Q2 sales declined 4.5%, but operating profit surged 22.8% due to premium mix and overseas restructuring.

• Refreshment Q2 sales dipped 0.5%, with operating profit down 13.9% amid weak domestic demand and higher costs.