LG Household & Health Care shines in Q3 despite market saturation

LG Household & Health Care has reported a record-high third quarter performance on Thursday, which the firm attributed to the continued trend of premium beauty products. 

LG H&H posted an operating profit of 311.8 billion won ($266 million) in Q3, up by 12.4 percent on-year. Its sales came at 1.96 trillion won, increased 13.1 percent from last year. 

The company said despite deepening concerns in the overall Asian economy, the consumer demand for luxury cosmetics has continued, which the company said it has responded with diversified high-end beauty brands such as Whoo, Su:m 37, Ohui and CNP.

It said it also found new momentum in the saturated low-cost cosmetics market by acquiring US-based cosmetics firm New Avon in April.

LG H&H said its quarterly operating profit has been posting above 300 billion won for three consecutive quarters, making a stable growth throughout the year.

For Q3, the company’s cosmetics business posted 211.9 billion won of operating profit and 1.6 trillion won of sales, up by 15.1 percent and 21.6 percent on-year. 

The company’s household business and beverage business, which sells Coca-Cola beverages, have posted 401.1 billion won and 402.9 billion won in sales, respectively. 

By Kim Da-sol (ddd@heraldcorp.com)