LG H&H (051900) Q4 2025 earnings summary

Executive summary

• Sales declined 8.5% year-over-year in 4Q 2025 to 1,473bn KRW, with an operating loss of 73bn KRW, turning to deficit from a profit in the prior year.

• Net loss widened to 251bn KRW in 4Q 2025, compared to a net loss of 90bn KRW in 4Q 2024.

• For FY 2025, sales fell 6.7% year-over-year to 6,355bn KRW, and operating profit dropped 62.8% to 171bn KRW.

• Net profit for FY 2025 turned to a deficit of 86bn KRW from a profit of 204bn KRW in FY 2024.

Financial highlights

• Gross profit margin decreased from 6.7% to 2.7% for FY 2025.

• Debt-to-equity ratio improved to 23.3% at year-end 2025 from 30.2% a year earlier.

• Cash and cash equivalents decreased by 167bn KRW year-over-year.

Outlook and guidance

• FY 2026 is targeted as a growth inflection point, with low single-digit year-over-year growth expected.

• Strategic focus on nurturing 10 brands, accelerating overseas growth, and pivoting to modern channels.