LG H&H (051900) Q2 2025 earnings summary

Executive summary

• 2Q 2025 sales declined 8.8% year-over-year to 1,605bn KRW, with operating profit down 65.4% to 55bn KRW and net profit down 64.0% to 39bn KRW.

• 1H 2025 sales fell 5.3% year-over-year to 3,303bn KRW, operating profit dropped 36.3% to 197bn KRW, and net profit decreased 35.5% to 142bn KRW.

Financial highlights

• Gross margin for 2Q 2025 was 50% (806bn KRW gross profit on 1,605bn KRW sales), down from 53.5% a year ago.

• Operating margin for 2Q 2025 was 3.4%, down 5.6 percentage points year-over-year.

• Debt-to-equity ratio improved to 26.3% as of June 2025 from 30.2% at end-2024.

• Overseas sales in 2Q 2025 remained flat at 520bn KRW, accounting for 32% of total sales.

Outlook and guidance

• Plans to expand beauty tech business with the acquisition of 'LG Pra.L' and launch of new device and skincare lines.

• Further expansion of product lineups and distribution channels for beauty tech expected in 2H 2025.