LG H&H (051900) Q4 2024 earnings summary

Executive summary

• 4Q 2024 sales rose 2.7% year-over-year to 1,610bn KRW, with operating profit down 20.7% to 43bn KRW.

• FY 2024 sales were nearly flat at 6,812bn KRW (+0.1% yoy), operating profit declined 5.7% to 459bn KRW.

• Net profit for FY 2024 increased 24.7% year-over-year to 204bn KRW.

Financial highlights

• 4Q 2024 gross profit was 815bn KRW (+0.3% yoy), with a gross margin decrease due to higher COGS.

• FY 2024 operating margin was 6.7%, down 0.4 percentage points from the prior year.

• Overseas sales in 4Q 2024 grew 8.9% year-over-year, now 38% of total sales.

• FY 2024 overseas sales rose 3.5% to 2,112bn KRW, 31% of total sales.

Outlook and guidance

• FY 2025 sales guidance targets mid-single digit year-over-year growth.

• Focus on global business diversification, digital innovation, and M&A for future growth.

• Plans to expand in North America, SE Asia, and EMEA, and nurture strategic brands in Japan and China.