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LG Household & Health Care Reports Q4 Losses After One-Off Expenses Including Voluntary Retirements
Creatrip Team
a month ago
LG Household & Health Care (LG생활건강) posted a provisional 2025 operating profit of 170.7 billion KRW, a 62.8% drop year-on-year, and a net loss of 85.8 billion KRW. Full-year revenue fell 6.7% to 6.3555 trillion KRW. In Q4 the company swung to an operating loss of 72.7 billion KRW (from a year-earlier operating profit of 43.4 billion KRW), with Q4 revenue of 1.4728 trillion KRW and a net loss of 251.2 billion KRW. Overseas sales rose in the U.S. and Japan—helped by brands like Dr.Groot and Yusimol—by 7.9% and 6.0% respectively, but China sales fell 16.6%, pulling overall overseas revenue down 5.0%. The beauty division saw Q4 revenue drop 18.0% to 566.3 billion KRW and an operating loss of 81.4 billion KRW, though overseas demand for brands such as The Face Shop and VDL showed progress. Results were worsened by large one-off costs including voluntary retirements and distribution-channel adjustments (such as duty-free inventory changes). The Home Care & Daily Beauty (HDB) unit maintained growth via marketing and expanded offline presence in North America and Japan; the premium brands unit increased marketing but faced one-off personnel costs. LG H&H’s CEO Lee Seon-ju set a goal to become a “Science Driven Beauty & Wellness Company” and aims for single-digit sales growth, focusing on digital commerce and H&B (health & beauty) stores and doubling down on high-growth channels and markets with refined digital marketing to improve customer experience.
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