LG H&H (051900) Q3 2025 earnings summary

Executive summary

• 3Q 2025 sales declined 7.8% year-over-year to 1,580bn KRW, with operating profit down 56.5% to 46bn KRW and net profit down 68.2% to 23bn KRW.

• Year-to-date (YTD) sales fell 6.1% to 4,883bn KRW, operating profit dropped 41.4% to 243bn KRW, and net profit decreased 43.7% to 165bn KRW.

• Overseas sales grew 6.6% in 3Q and 3.5% YTD, now representing 31% and 32% of total sales, respectively.

Financial highlights

• Gross profit for 3Q 2025 was 750bn KRW, down 14.5% year-over-year; gross margin declined.

• Operating margin for 3Q 2025 was 2.9%, down from 6.2% in 3Q 2024.

• Cash and cash equivalents decreased to 998bn KRW as of September 2025.

• Debt-to-equity ratio improved to 24.9% from 30.2% at year-end 2024.

Segment performance

• Beauty segment sales dropped 26.5% year-over-year in 3Q 2025, turning to an operating loss of -59bn KRW due to restructuring and weak traditional channel sales.

• HDB (Home Care & Daily Beauty) sales rose 4.1% with operating profit up 6.8%, driven by premium brand growth and strong digital/offline expansion.

• Refreshment sales increased 2.4% and operating profit surged 16.9%, supported by effective marketing and improved cost efficiency.