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Consumer Non-Durables

LG H&H Co., Ltd.

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.

Business Summary

LG H&H Co., Ltd. engages in the production and sale of household goods and cosmetic products. It operates through following divisions Beauty, Health and Refreshment businesses. The Beauty business division provides anti-aging cosmetic products. The 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.

Financial Highlights

Dec 2021 KRWUSD
Revenue8,091.51B7,065.83M
Gross Profit4,889.39B4,269.61M
Operating income1,290.76B1,127.14M
Income before tax1,182.29B1,032.42M
Net income844,523.49M737.47M
EBITDA1,565.81B1,367.33M
Diluted EPS50,401.1244.01
Dividends Per Share12,00010.47
Total Assets7,555.23B6,355.61M
Total liabilities2,057.40B1,730.73M
Total equity5,388.01B4,532.50M
Operating cash flow984,481.66M859.68M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 6,105.13B 6,747.53B 7,685.42B 7,844.50B 8,091.51B
Gross Profit 3,418.75B 3,970.89B 4,607.37B 4,712.67B 4,889.39B
Operating income 929,595.27M 1,040.20B 1,175.91B 1,220.74B 1,290.76B
Income before tax 861,078.57M 956,005.11M 1,085.16B 1,114.04B 1,182.29B
Net income 606,411.78M 682,743.15M 778,097.70M 797,628.67M 844,523.49M
EBITDA 1,076.00B 1,197.65B 1,426.93B 1,482.96B 1,565.81B
Diluted EPS 36,190.62 40,746.08 46,436.83 47,602.44 50,401.12
Dividends Per Share 9,000 9,250 11,000 11,000 12,000
Total Assets 4,778.51B 5,275.87B 6,493.66B 6,801.41B 7,555.23B
Total liabilities 1,696.73B 1,681.85B 2,256.58B 1,952.22B 2,057.40B
Total equity 2,996.23B 3,512.06B 4,146.73B 4,755.97B 5,388.01B
Operating cash flow 735,477.19M 817,116.84M 1,139.64B 1,004.84B 984,481.66M
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 5,400.33M 6,131.23M 6,590.23M 6,648.51M 7,065.83M
Gross Profit 3,024.08M 3,608.20M 3,950.81M 3,994.17M 4,269.61M
Operating income 822.27M 945.19M 1,008.34M 1,034.62M 1,127.14M
Income before tax 761.67M 868.68M 930.52M 944.19M 1,032.42M
Net income 536.40M 620.38M 667.21M 676.02M 737.47M
EBITDA 951.79M 1,088.26M 1,223.59M 1,256.87M 1,367.33M
Diluted EPS 32.01 37.02 39.81 40.34 44.01
Dividends Per Share 7.96 8.40 9.43 9.32 10.47
Total Assets 4,463.61M 4,728.33M 5,615.17M 6,261.08M 6,355.61M
Total liabilities 1,584.92M 1,507.30M 1,951.30M 1,797.12M 1,730.73M
Total equity 2,798.78M 3,147.57M 3,585.74M 4,378.14M 4,532.50M
Operating cash flow 650.57M 742.48M 977.23M 851.64M 859.68M

Valuation Measures

Dec 2021
PER21.76
ROA11.76%
ROE16.65%
Operating margin15.95%
Profit margin10.43%

Key executives

  • Vice Chairman & Chief Executive Officer: Suk-Yong Cha
  • Chief Financial Officer & Director: Hong-Gi Kim
  • Chief Technology Officer: Seon-Gyu Park
  • Head-Legal & Compliance Support: Jun-Sik Han
  • MD & Head-Household Goods Research: Sang-Min Lee

Shareholders

  • LG Corp. (34.0%)
  • National Pension Service of Korea (6.9%)
  • LG H&H Co., Ltd. (6.1%)
  • First Sentier Investors (Hong Kong) Ltd. (1.6%)
  • The Vanguard Group, Inc. (1.4%)
  • Comgest SA (1.3%)
  • BlackRock Fund Advisors (1.2%)
  • Harding Loevner LP (1.0%)
  • Norges Bank Investment Management (0.8%)
  • Vontobel Asset Management AG (0.8%)

Contact Details

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

Related Companies

  • Oriental Biomed Lab Ltd.
  • Loa Korea Co., Ltd.
  • LG Household & Health Care International Trading (Shanghai) Co
  • LG Household & Health Care Cosmetics R&D (Shanghai) Co., Ltd.
  • LG H&H Tokyo R&D Center, Inc.
  • LG Household & Health Care (Thailand) Ltd.
  • LG H&H HK Ltd.
  • Balkeunnuri Co., Ltd.
  • FMG Co., Ltd.
  • Boinca, Inc.
  • MiGen Story Co., Ltd.
  • Rucipello Korea, Inc.
  • LG Household & Health Care Malaysia Sdn. Bhd.
  • K&I Co., Ltd.
  • Zenisce Co., Ltd.
  • Creme Shop, Inc.
  • Johnson & Johnson Pte Ltd. /Oral Care Brand/
  • LG H&H USA, Inc.
  • Avon Co.
  • Toiletry Japan, Inc. KK
  • LG Household & Health Care (Taiwan) Ltd.
  • CNP Cosmetics Co., Ltd.
  • R&Y Corp.
  • Diamond Pure Water Co., Ltd.
  • Future Co., Ltd.
  • Ginza Stefany Cosmetics Co., Ltd.
  • Beijing LG Household Chemical Co., Ltd.
  • LG Vina Cosmetics Co., Ltd.
  • Coca-Cola Beverage Co., Ltd.
  • TAI GUK PHARM Co., Ltd.

Competitors

  • TONYMOLY Co., Ltd.
  • Estee Lauder Companies Inc. Class A
  • Revlon, Inc. Class A
  • AK Holdings, Inc.
  • IT'S HANBUL CO. LTD.
  • Hankook Cosmetics Co., Ltd
  • Coreana Cosmetics Co., Ltd
  • Leaders Cosmetics Co., Ltd
  • Prostemics Co. Ltd.
  • DongKook Pharmaceutical Co., Ltd.
  • VT GMP Co., Ltd.
  • Korea Cast Iron Pipe Ind. Co., Ltd.
  • DongKoo Bio & Pharm Co. Ltd.
Last Updated on 30 Sep, 2022

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