LG Household & Health Care Reports First-Time Sales Growth in North America, Surpassing China

LG Household & Health Care's ongoing strategy to diversify its global business portfolio is yielding visible results. The company reported that in the second quarter, its North American sales surpassed those of China for the first time ever, signaling a shift in its growth drivers from a reliance on China to a focus on key global markets.

For the second quarter, LG Household & Health Care's consolidated revenue totaled ₩1.6574 trillion, with operating profit reaching ₩102.8 billion, marking year-on-year increases of 3.3% and 87.5%, respectively. The premium brands under its K-hair care category, including Dr. Groot, showed sustainable growth, while functional products contributed positively to domestic and international channels.

The company announced its preliminary Q2 results through the electronic disclosure system on the 29th. The overseas revenue for this quarter also saw a 12.6% increase from the same period last year, totaling ₩584.5 billion, which accounts for 35% of its total revenue. Of this, sales in North America reached ₩205.8 billion, representing a 47.3% increase, whereas sales in China decreased by 5.0% to ₩176.0 billion. This marks the first occasion since LG Household & Health Care was split into an independent entity that North American sales have exceeded those of China.

Temporary improvements in performance were also noted due to U.S. customs refunds. Nonetheless, operational profit has significantly improved year-on-year, indicating that the innovative products featuring the company's unique R&D technology have demonstrated competitiveness in the North American market.

For the first half of 2026, the consolidated revenue decreased by 2.1% to ₩3.234 trillion, while operating profit increased by 6.8% to ₩210.6 billion. Sales by segment showed that Beauty revenue fell by 4.7% to ₩1.5895 trillion, while Home Care & Daily Beauty (HDB) saw a 2.1% increase to ₩775.5 billion. Refreshment recorded a slight decline of 0.8% to ₩869.0 billion.

The Beauty segment's Q2 revenue rose by 3.9% to ₩818.4 billion, and it achieved a positive operating profit of ₩44.4 billion. Notable brands, including Dr. Groot, Yushimoll, Dominus, VDL, and Hince, experienced consistent growth across both online and offline channels, supporting the overall beauty performance.

LG Household & Health Care has strategically restructured its brand portfolio according to its new vision of becoming a 'Science Driven Beauty & Wellness Company.' This approach has led to significant outcomes in nurturing high-potential channels such as digital commerce and health & beauty stores.

In the second quarter, LG Household & Health Care also continued to launch innovative functional new products that incorporate differentiated R&D technology. The luxury cosmetic brand 'The Whoo' launched a new whitening anti-aging line based on a study of the skin genes of 60,000 Asians, unveiling it at a global launch event in Shanghai featuring celebrities.

The beauty device brand 'LG Pra.L' introduced the 'Melabim Toning,' a whitening device that utilizes high-output LED convergence technology to target melanin pigmentation, thereby expanding its customer base.

As interest in K-beauty broadens to include 'scalp and hair loss care,' the demand for the premium scalp care brand Dr. Groot has also increased. Following its entry into offline Costco stores in North America in October last year, the brand is set to launch in Sephora stores across the U.S. starting in August this year.

In the Home Care & Daily Beauty segment, Q2 revenue increased by 5.5% from the same period last year to ₩377.6 billion, and operating profit grew by 23.1% to ₩22.3 billion. Sales of differentiated functional products addressing daily health and hygiene concerns have been strong in domestic nurturing channels such as online and Costco.

In Q2, the company enhanced product competitiveness in this category with the introduction of the 'Elastine Dr. Novid Scalp Shampoo for Seborrheic Dermatitis,' which alleviates symptoms of hair loss while addressing concerns of seborrheic dermatitis. Additionally, products like the 'Pigi Moraxella Fabric Softener,' which resolves concerns over laundry odors during the monsoon season while enhancing scent longevity, and the 'Pink Power Homestar Pink Stain Cleaner,' which effectively suppresses stains with a pink coating technology, provide differentiated customer experiences.

For the Refreshment segment, Q2 revenue was ₩461.4 billion, reflecting a 0.5% increase from the same period last year, although operating profit fell by 15.1% to ₩36.1 billion. Despite ongoing sluggish beverage consumption domestically, revenue increased slightly thanks to enhanced promotional activities during the World Cup. However, rising raw material costs due to instability in the Middle East have impacted operating profits.

Coca-Cola has launched limited edition products featuring packaging designs symbolizing participating countries during the World Cup and has introduced a new customer experience with 'Sprite Zero with Tea,' which combines Sprite with the popular black tea mix. Monster Energy has expanded its fan base with the launch of 'Monster Energy Ultra Violet,' a new product infused with subtle citrus and sweet grape flavor, and zero sugar.

An official from LG Household & Health Care stated that the trend-leading products created with differentiated R&D capabilities are receiving positive responses from customers. The company is set to expand investments in high-potential markets and core channels, continuing to lead the way in 'Intelligent K-beauty' driven by scientific research.

Additionally, LG Household & Health Care's board has resolved to distribute a mid-term dividend of ₩1,500 per share for 2026, with payments expected by August 28 for shareholders of record as of August 14. The mid-term dividend has been part of the company's shareholder return policy since last year.