LG Household & Health Care Q3 sales fall 3 percent; net profits rise 3 percent

LG Household & Health Care Q3 sales fall 3 percent; net profits rise 3 percent

THE WHAT? LG Household & Health Care has seen net profit rise 3.4 percent in Q3 to 240 billion won ($205.8 million), while sales fell 2.9 percent in the same period to 2.01 trillion won. 

THE DETAILS LG’s beauty division reported a year-on-year decline of 10.2 percent, with operating profit increasing 9 percent to 215.4 billion won.

The home care and beauty division saw YOY sales jump of 6.1 percent, with operating profit down 4.7 percent to 63.6 billion won. This was attributed to the rapid rise in demand for hygiene products last year. 

As a result of the fall, company shares were 7 percent off at a near 52-week low of 1,235,000 won ($1,068.43), following the end of its hot earnings streak, according to Pulse News. 

THE WHY? According to a company statement, “The deterioration of the business environment triggered by various adverse factors such as the spread of the Delta variant of Covid-19, global supply chain shocks, and price hikes of major raw materials made the third quarter very difficult.
“Sales decreased slightly due to loss of sales opportunities from the intensified logistics crisis ahead of major events such as Double Eleven in China and Black Friday in the U.S. in the fourth quarter, but profitability improved as a result of mix improvement from luxury cosmetics and premium products.”

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