Asia300

LG Household & Health Care Ltd.

South Korea

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Jul 24, 2017
Prev close: 938,000
Jul 24, 2017
Market cap:
Market cap(USD):
15,930.68B
14,300.43M
Shares: 17.71M

Currency in KRW

Company profile

Market(Ticker): KRX(051900)
Sector:
Industry:
Consumer Non-Durables
Household/Personal Care
Full time employees: --

Business summary

LG Household & Health Care Ltd. engages in the production and sale of household goods and cosmetic products. It operates through Beauty, Health, and Refreshment business divisions. Its Beauty business division provides anti-aging cosmetic products. Its Health division markets healthcare, skincare, and household products. The Refreshment division provides soda, juice, energy drinks, and other beverages. The company was founded on April 3, 2001 and is headquartered in Seoul, South Korea.

Company background

LG Household & Health Care is one of the largest household goods and cosmetics manufacturers in South Korea and ranks second in cosmetics in the country after AmorePacific Group. The company's cosmetics sales via duty-free shops have increased steadily due to a growing number of visitors from abroad. In addition, it has recently been active in mergers and acquisitions of domestic and foreign cosmetics brands. These factors have helped the cosmetics division gain a higher percentage of consolidated sales than the household goods division.

In 2001, LG Household & Health Care was established as a spinoff from LG Chem, taking over the cosmetics business from its parent LG group, one of South Korea's global conglomerates, which started out as a cosmetics producer. The company is built around three core divisions: detergent and other household goods, cosmetics and soft drinks, and its overseas operations focused on cosmetics.

The company is enjoying brisk demand for its high-end cosmetics brands at home and in China, including the Whoo line, based on traditional Korean herbal medicine, and Sum 37, a brand that uses naturally-fermented plants from around the world, at home and in China. The Face Shop, the low-cost brand acquired by LG Household, has proved popular with young Asian consumers. Meanwhile, the Korean company is preparing to keep pace with the era of an aging society through its Japanese subsidary, EverLife, that sells inner beauty products and health products.

LG Household & Health Care Vice Chairman Cha Suk-yong, who previously worked for U.S. consumer products maker Procter & Gamble, serves as CEO of the South Korean company. The company is vigorously pursuing new product development under the leadership of Cha, who is noted for his P&G-style management approach emphasizing innovation.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 6,094.05B
Gross profit 3,587.41B
Operating income 880,164.61M
Income before tax 745,485.18M
Net income 568,220.98M
EBITDA 1,013.85B
Diluted EPS 33,911.40
Dividends per share 7,500
Total assets 4,502.16B
Total liabilities 1,881.32B
Total equity 2,532.35B
Operating cash flow 713,435.54M

Currency in KRW

Revenue 5,252.64M
Gross profit 3,092.09M
Operating income 758.63M
Income before tax 642.55M
Net income 489.76M
EBITDA 873.87M
Diluted EPS 29.22
Dividends per share 6.46
Total assets 3,727.57M
Total liabilities 1,557.64M
Total equity 2,096.66M
Operating cash flow 614.93M

Currency in USD

Valuation measures

Dec 2016

PER 25.27
ROA 13.03%
ROE 24.86%
Operating margin 14.44%
Profit margin 9.32%

Key executive

  • Chief Executive Officer & Director: Suk-Yong Cha
  • Chief Financial Officer & Director: Sung Huh
  • Chief Technology Officer & Executive Director: Cheon-Gu Lee
  • Executive Director & Head-Household Goods Business: Jeong-Ae Lee
  • Managing Director: Heung-Gi Lee

Share holders

  • LG Corp.(34.0%)
  • National Pension Service of Korea(6.1%)
  • LG Household & Health Care Ltd.(6.1%)
  • OppenheimerFunds, Inc.(2.8%)
  • T. Rowe Price International Ltd.(1.9%)
  • Vontobel Asset Management, Inc.(1.2%)
  • The Vanguard Group, Inc.(1.2%)
  • BlackRock Fund Advisors(1.2%)
  • T. Rowe Price Associates, Inc.(1.0%)
  • Harding Loevner LP(0.8%)

Address

  • Website: http://www.lgcare.com
  • Address: LG Gwanghwamun Building, 58 Saemunan-ro, Seoul, 03184, South Korea
  • Phone: +82.2.3773.1114

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