The South Korean company’s financial results were announced on 31 July.
In Q2 2025, it recorded overall sales of KRW1.60tn (USD1.14bn) and operating profit of KRW54.8billion (USD39m), marking a decrease of 8.8% and 65.4% respectively, compared to the same period last year.
For its beauty division, sales in Q2 2025 decreased 19.4% year-on-year to KRW604.6bn (USD432m), and operating profit turned to a loss of KRW16.3bn (USD11.67m).
According to LG H&H, although key channels such as domestic health and beauty shops, Amazon in North America, and the Japanese market continued to grow rapidly, intensifying market competition across the board led to increased cost burdens.
Furthermore, the restructuring of traditional channels in the local market, such as duty-free shops, also contributed to the decline in performance.
The company’s Home Care & Daily Beauty (HDB) division comprises mainly mass personal care products, including oral care and hair care.
In Q2 2025, HDB’s sales reached KRW542bn (USD387m), a 2% increase year-on-year, but operating profit fell 7.1% to KRW28.6 billion (USD20.4m).
“While domestic sales continued to slump, robust responses for premium brands in overseas markets drove sales growth. Dr.Groot achieved an 800% year-on-year sales increase in the first half of this year alone, driven by rapid recognition on North American Amazon and TikTok,” LG H&H stated.
In addition, oral care brand EUTHYMOL is also strengthening its brand position, focusing on the Japanese and North American markets.
On the other hand, the decrease in operating profit is said to be due to increased fixed costs and expanded marketing investments.
Future-focused investments
LG H&H has continued to make “future-focused investments”, including the debut of luxury skin care brand The Whoo in the west.
The brand entered the North American market with the launch of its premium anti-ageing line named Hwanyu, which means “a return to youth” in Korean, at Frieze Art Fair, a world-renowned annual event held in New York.
Targeted at rejuvenating and revitalising the skin, the formulas in this range incorporate ingredients like wild ginseng and a complex containing over 70 oriental herbs to address various signs of ageing.
The Whoo also secured a new growth engine through the acquisition of LG Electronics’ beauty tech brand, LG Pra.L, in June this year.
LG Pra.L has since launched a new home beauty device, Superform Galvanic Booster, alongside a dedicated skin care line called Glasslike.
The small and portable device is designed to be a one-minute daily skin care routine, with key functions including boosting product absorption and enhancing results when used with Glasslike products.
“Our top priority is to improve fundamental corporate value, including augmenting our current businesses and securing new growth engines through mergers and acquisitions (M&A). We are maintaining the same proactive stance toward M&A as we have in the past to bolster future growth,” LG H&H said.
