LG Household & Health Care announced on the 30th that it successfully transitioned to operating profit in the first quarter, highlighting a rebound in profitability amid a strategic overhaul of its distribution channels. The company's sales reached 1.5766 trillion KRW, with an operating profit of 107.8 billion KRW, marking declines of 7.1% and 24.3%, respectively, compared to the previous year.

The significant drop in annual performance is attributed to a strategic realignment within domestic channels, particularly in duty-free sectors, despite strong growth in overseas markets like the Dr. Groot brand. Notably, the company has seen a 7% increase in sales compared to the fourth quarter of last year, suggesting a recovery trajectory with improvement in the operating profit margin from -4.9% to 6.8%.

In the international context, while sales burdens in China and Japan resulted in declines of 14.4% and 13.0%, respectively, North American sales surged by 35%, leading to a slight overall 0.9% increase in overseas revenue compared to the same period last year. This indicates a strategic pivot toward more lucrative markets, suggesting potential for future growth.

The performance breakdown for Q1 2026 indicates that LG's beauty segment generated sales of 771.1 billion KRW and an operating profit of 38.6 billion KRW, both reflecting declines of 12.3% and 43.2%. The strategic adjustments in duty-free quantities and ongoing optimization of offline stores contributed to this downturn, while investments in marketing are anticipated to support long-term growth.

Notably, brands like Dr. Groot and VDL are gaining traction in international markets, significantly contributing to overseas revenue growth. LG's redefined vision as a 'Science Driven Beauty & Wellness Company' is beginning to showcase its efficacy, particularly in online and offline channels.

In terms of product differentiation, the luxurious cosmetic line The History of Whoo has won the prestigious IR52 Jang Young-sil Award for its innovative research on the anti-aging component NAD and skin longevity technology. This accolade emphasizes the brand's competitive edge, aligning with LG's focus on research and development.

LG's premium scalp care brand, Dr. Groot, has capitalized on its North American online success by launching on Sephora’s platform in March and planning to penetrate all U.S. offline stores by August. Concurrently, CNP and belif are also increasing their presence in U.S. retail through partnerships with Ulta Beauty, demonstrating an effective approach to enhancing consumer touchpoints.

Meanwhile, LG's Home Care & Daily Beauty (HDB) segment recorded sales of 397.9 billion KRW, down 0.9% from the previous year, with an operating profit decrease of 7.4% to 25.4 billion KRW. This decline reflects a decrease in offline demand even as online and health and beauty stores reported strong sales. Launching 'Hero' products with differentiated ingredients and technology is seen as a strategy to bolster competitiveness.

The Refreshment segment posted sales and operating profit of 407.6 billion KRW and 43.8 billion KRW, respectively, showing declines of 2.2% and 6.8% year-over-year due to sluggish beverage consumption and decreased sales in traditional channels. To counter this, Coca-Cola Beverage plans to leverage global sports events like the FIFA World Cup for marketing initiatives aimed at boosting its offerings.

A company spokesperson highlighted that the rigorous restructuring of domestic distribution channels has begun yielding positive results since last year. The focus remains on enhancing product competitiveness through R&D-based differentiation while strategically targeting global and digital markets for sustainable growth.