LG H&H, last year’s’best ever’ performance… Amore overtakes cosmetic products to be ranked first

Input 2021.01.27 13:28 | Revision 2021.01.27 14:17

LG Household & Health Care (051900)This year’s record was the highest. Cosmetics business sales are competitors AMOREPACIFIC (090430)It is presumed to have achieved the first place overtaking.

Last year’s sales announced by LG H&H on the 27th were 7.844.5 billion won, an increase of 2.1% from the previous year. Operating profit increased by 3.8% to KRW 1.2209 trillion, and net income increased by 3.2% to KRW 8131 billion. Sales, operating profit, and net profit are all the highest ever since its inception.

Sales and operating profit of the cosmetics division, which account for the largest portion of earnings, declined only by one digit despite the aftermath of the coronavirus. Sales decreased 6.1% to KRW 4.458 trillion and operating profit decreased by 8.3% to KRW 8228 billion. Despite the overall downturn in consumption, the steadily increasing demand for luxury cosmetics such as Hu, Ohui, and Soom in China was largely affected.

Sales and operating profit of household products such as shampoo, toothpaste and body wash increased by double digits. Sales increased 25.9% to KRW 1,873.3 billion, and operating profit increased by 63% to KRW 205.3 billion. Beverage divisions such as Coca-Cola, Monster Energy, and Georgia also increased both sales and operating profit. Sales increased 4.3% to 1,5132 billion won, and operating profit increased 26.2% to 192.8 billion won.

The cosmetics division’s sales are estimated to have surpassed Amorepacific for the first time ever. The combined cosmetics sales of six cosmetic brands, shampoo and body products recorded 5,552.4 billion won and operating profit of 96.4 billion won. Excluding shampoo and body products, sales amounted to 4.458 trillion won, exceeding the estimate of Amorepacific’s domestic securities firms (3.9 trillion won).

Sales in the fourth quarter increased by 4.0% to KRW 2.94 trillion. Operating profit increased 6.3% to 256.3 billion won, and net profit increased 6.6% to 142.6 billion won. Cosmetics sales decreased 0.9% to KRW 1,324.5 billion, and operating profit increased 5.4% to KRW 2254 billion. As China’s duty-free store sales increased for the first time since the coronavirus, cosmetics sales grew 41% in the fourth quarter and 21% annually.

Household products such as shampoo, toothpaste, and body products increased sales and operating profit by 23.6% and 7.4%. Beverage divisions such as Coca-Cola, Monster Energy, and Georgia also saw a 3.7% increase in sales and 17.1% increase in operating profit.