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Consumer Non-Durables

LG Household & Health Care

  • 1,267,000.00 KRW
  • -11,000.00
  • -0.86%
  • South Korea
    Apr 20, 2018
  • Ticker
    KRX(051900)
  • Prev. close
    1,278,000
  • Market cap (KRW)
    21,513.80B
  • Market cap (USD)
    20,158.20M
  • Shares
    17.71M

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 Household & Health Care 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 2017 KRWUSD
Revenue6,270.46B5,546.57M
Gross Profit3,732.83B3,301.90M
Operating income929,920.98M822.56M
Income before tax861,404.29M761.96M
Net income606,653.06M536.61M
EBITDA1,076.33B952.07M
Diluted EPS36,20532.02
Dividends Per Share9,0007.96
Total Assets4,777.96B4,463.09M
Total liabilities1,695.35B1,583.62M
Total equity2,997.06B2,799.55M
Operating cash flow735,477.19M650.57M
Currency in KRWCurrency in USD

Historical Data

 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 4,326.25B 4,677.00B 5,328.49B 6,094.05B 6,270.46B
Gross Profit 2,229.77B 2,500.10B 3,027.49B 3,587.41B 3,732.83B
Operating income 496,410.68M 511,039.84M 682,517.16M 880,164.61M 929,920.98M
Income before tax 469,876.98M 474,744.20M 638,450.66M 745,485.18M 861,404.29M
Net income 357,304.47M 349,432.05M 460,351.20M 568,220.98M 606,653.06M
EBITDA 606,648.50M 632,151.49M 809,583.56M 1,013.85B 1,076.33B
Diluted EPS 21,323.90 20,854.08 27,473.73 33,911.40 36,205
Dividends Per Share 3,750 4,000 5,500 7,500 9,000
Total Assets 3,435.10B 3,828.34B 4,214.63B 4,502.16B 4,777.96B
Total liabilities 1,959.72B 2,119.84B 2,099.29B 1,881.32B 1,695.35B
Total equity 1,408.85B 1,637.42B 2,037.29B 2,532.35B 2,997.06B
Operating cash flow 389,518.34M 465,790.65M 637,804.64M 713,435.54M 735,477.19M
 Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017
Revenue 3,951.77M 4,443.04M 4,707.96M 5,252.64M 5,546.57M
Gross Profit 2,036.76M 2,375.03M 2,674.92M 3,092.09M 3,301.90M
Operating income 453.44M 485.47M 603.03M 758.63M 822.56M
Income before tax 429.20M 450.99M 564.10M 642.55M 761.96M
Net income 326.37M 331.95M 406.74M 489.76M 536.61M
EBITDA 554.13M 600.52M 715.30M 873.87M 952.07M
Diluted EPS 19.47 19.81 24.27 29.22 32.02
Dividends Per Share 3.42 3.79 4.85 6.46 7.96
Total Assets 3,254.94M 3,483.00M 3,594.41M 3,727.57M 4,463.09M
Total liabilities 1,856.94M 1,928.62M 1,790.36M 1,557.64M 1,583.62M
Total equity 1,334.96M 1,489.72M 1,737.49M 2,096.66M 2,799.55M
Operating cash flow 355.80M 442.48M 563.52M 614.93M 650.57M

Valuation Measures

Dec 2017
PER32.84
ROA13.07%
ROE21.94%
Operating margin14.83%
Profit margin9.67%

Key executives

  • Chief Executive Officer & Director: Suk-Yong Cha
  • Chief Financial Officer & Director: Sung Huh
  • Chief Technology Officer & Vice President: Cheon-Gu Lee
  • Managing Director, Head-Legal & Compliance Support: Jun-Sik Han
  • Vice President & Head-Cosmetics Business: Jeong-Ae Lee

Shareholders

  • LG Corp. (34.0%)
  • National Pension Service of Korea (6.1%)
  • LG Household & Health Care Ltd. (6.1%)
  • OppenheimerFunds, Inc. (4.0%)
  • T. Rowe Price International Ltd. (2.1%)
  • BlackRock Fund Advisors (1.3%)
  • The Vanguard Group, Inc. (1.3%)
  • Vontobel Asset Management, Inc. (1.1%)
  • Comgest SA (0.9%)
  • Harding Loevner LP (0.9%)

Contact Details

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

Related Companies

  • Zenisce Co., Ltd.
  • Johnson & Johnson Pte Ltd. /Oral Care Brand/
  • LG Household & Health Care America, Inc.
  • LG Household & Health Care Ltd. (Taiwan)
  • 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.
  • TAI GUK PHARM Co. Ltd.
  • VOV Cosmetics Co., Ltd.
  • Everlife Co., Ltd.
  • Face Shop Korea Co., Ltd.
  • Coca-Cola Korea Bottling Co. Ltd.
  • Hai Tai HTB Co., Ltd.

Competitors

  • AmorePacific Group, Inc.
  • Amorepacific Corp.
  • ABLE C&C
  • Coty Inc. Class A
  • KT & G Corporation
  • Coreana Cosmetics Co., Ltd
  • Winnova Co., Ltd.
  • AK Holdings, Inc.
  • IT'S HANBUL CO. LTD.
  • Leaders Cosmetics Co., Ltd
  • KODI CO., LTD.
  • Korea Cast Iron Pipe Ind. Co., Ltd.
  • Hite Jinro Co., Ltd.
  • Wooree Lighting Co., Ltd.
Last Updated on 20 Apr, 2018

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