THE WHAT? LG Household & Healthcare has reported a 10.6 YOY Q2 net income rise to 226.4 billion won ($196.8 million), bolstered by the sale of luxury brand cosmetics in China.
THE DETAILS A record high for the South Korean company, operating profit rose 10.7 percent YOY to 335.8 billion won, with sales growing 13.4 percent to 2.02 trillion won.
The three figures were the highest April – June earnings since the company’s launch in 2001.
First half sales of the beauty business rose 14.3 percent to 2.27 trillion won, with operating income growing 18.4 percent.
The home care and daily beauty (HBD) sector grew 8 percent to 1.02 trillion won, with operating profit falling 2.7 percent to 125 billion won.
THE WHY? LG Household & Healthcare cited strong sales of luxury cosmetic products in China as the catalyst for the record-breaking Q2 performance.
Taking to a statement the company said, “Despite the lingering impact from the new coronavirus pandemic, steep growth in the luxury cosmetics segment and China operations accelerated the company’s recovery in sales and operating profit to the pre-pandemic level.
“The History of Whoo, ‘O HUI’ and ‘SU:M37’ performed well in the competitive Chinese luxury cosmetics market, projecting high demand for our products.”