LG Household & Healthcare see big surge in luxury cosmetic sales

Group sales came in at 18.5% higher compared to the same quarter last year, at KRW1.6tr won(US1.44bn), while quarterly operating profit for the period came in at KRW225bn.

The company also reported that in the first six months of the year, it achieved its highest half-year result of all times, with sales increasing 17.6% to KRW3.1tr and operating profit increasing 32.4% to KRW459bn won.

11 years of continuous growth​

The company’s focus also includes household goods and beverages, which it noted were strong growth drivers during the second quarter.

But it was the performance of the company’s cosmetics division that was the main force behind the group results, helping the company to achieve its 44^th​ consecutive quarterly sales increase.

Likewise, the company also noted that both sales and operating profit have continued to deliver growth during every quarter in the past 11 years.

Cosmetics growth​

Overall the company’s cosmetics division reported a 33.1% growth in quarterly sales compared to the same period in 2015, to reach KRW820bn, while operating profit for the division increased by over 55% to reach KRW153bn.

Driving these results was a 56% increase in luxury cosmetics compared to the same period last year, with this segment of sales contributing 70% to the division’s total revenues, mainly due to the strength of the Whoo and su.m brands.

The company also pointed that in China Whoo sales grew 56% over the course of the year, while also expanding counters up to 140. Meanwhile su:m was introduced in department stores and online in April and May respectively.