THE WHAT? LG Household & Health Care has reported its results for the first quarter of fiscal 2021. The K-beauty behemoth saw sales rise 7.4 percent to KRW2 trillion, and operating profit jump 11 percent yoy to KRW371 billion. Net income rose 10.5 percent to KRW259 billion.
THE DETAILS Sales and profits grew in all three divisions, LG H&H said, despite the persisting ‘difficult business environment caused by COVID-19’.
Indeed, Beauty sales turned to growth for the first time since the pandemic begun, hitting KRW1.2 trillion, a rise of 8.6 percent yoy, led by the continued growth of overseas business and high demand for luxury brands.
By brand, The First saw the steepest sales growth, +64 percent, while LosecSumma put on 40 percent and The History of Whoo 31 percent. O Hui gained 14 percent while su:um inched up a modest 1 percent.
THE WHY? The company said in a statement, “Particularly in China, growth of luxury brands and digital sales led steady sales growth. THEFACESHOP, which has high brand awareness in China, is reinforcing its product line for the MZ generation with a clean beauty concept and digital focused strategy.
“In response to fast-changing customer behavior, Luxury brands, such as O HUI, su:m and belif, launched a variety of new products, including microbiome essence and eco-friendly products with 100 percent PET bottles.”