THE WHAT? LG Household & Healthcare has reported a Q2 net profit drop of 44.3 percent, reporting 126 billion won (US$96.9 million) in the April-June period, compared with 226.4 billion won during the same period last year.
THE DETAILS Operating profit was down 35.5 percent YOY to 216.6 billion won, with sales falling fell 7.9 percent on-year to 1.86 trillion won.
Home and daily beauty care unit posted a modest performance, which was pushed by improved product mix and a sales increase of premium products.
THE WHY? The dip was attributed to worldwide inflations and problems causes by the COVID-19 pandemic and war in Ukraine.
Taking to a statement, the South Korean cosmetics company said, “The company’s second quarter operations suffered a heavy setback after China tightened its COVID-19 lockdowns in March, which restricted people’s movements, closed operations at our retail stores and limited movement of logistics,” the company explained in a statement.
“The prolonged war in Ukraine led to a rise in raw material prices and pushed consumer prices, eventually hindering growth in our sales and operating profits.”