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Consumer Non-Durables

LG Household & Health Care

  • 1,173,000.00 KRW
  • +13,000.00
  • +1.12%
  • South Korea
    Aug 19, 2019
  • Ticker
    KRX(051900)
  • Prev. close
    1,160,000
  • Market cap (KRW)
    19,586.89B
  • Market cap (USD)
    16,169.47M
  • 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 2018 KRWUSD
Revenue6,747.53B6,131.23M
Gross Profit3,970.89B3,608.20M
Operating income1,040.20B945.19M
Income before tax956,005.11M868.68M
Net income682,743.15M620.38M
EBITDA1,197.65B1,088.26M
Diluted EPS40,74637.02
Dividends Per Share9,2508.40
Total Assets5,275.87B4,728.33M
Total liabilities1,681.85B1,507.30M
Total equity3,512.06B3,147.57M
Operating cash flow817,116.84M742.48M
Currency in KRWCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 4,677.00B 5,328.49B 6,094.05B 6,105.13B 6,747.53B
Gross Profit 2,500.10B 3,027.49B 3,587.41B 3,418.75B 3,970.89B
Operating income 511,039.84M 682,517.16M 880,164.61M 929,595.27M 1,040.20B
Income before tax 474,744.20M 638,450.66M 745,485.18M 861,078.57M 956,005.11M
Net income 349,432.05M 460,351.20M 568,220.98M 606,411.78M 682,743.15M
EBITDA 632,151.49M 809,583.56M 1,013.85B 1,076.00B 1,197.65B
Diluted EPS 20,854.08 27,473.73 33,911.40 36,191 40,746
Dividends Per Share 4,000 5,500 7,500 9,000 9,250
Total Assets 3,828.34B 4,214.63B 4,502.16B 4,778.51B 5,275.87B
Total liabilities 2,119.84B 2,099.29B 1,881.32B 1,696.73B 1,681.85B
Total equity 1,637.42B 2,037.29B 2,532.35B 2,996.23B 3,512.06B
Operating cash flow 465,790.65M 637,804.64M 713,435.54M 735,477.19M 817,116.84M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 4,443.04M 4,707.96M 5,252.64M 5,400.33M 6,131.23M
Gross Profit 2,375.03M 2,674.92M 3,092.09M 3,024.08M 3,608.20M
Operating income 485.47M 603.03M 758.63M 822.27M 945.19M
Income before tax 450.99M 564.10M 642.55M 761.67M 868.68M
Net income 331.95M 406.74M 489.76M 536.40M 620.38M
EBITDA 600.52M 715.30M 873.87M 951.79M 1,088.26M
Diluted EPS 19.81 24.27 29.22 32.01 37.02
Dividends Per Share 3.79 4.85 6.46 7.96 8.40
Total Assets 3,483.00M 3,594.41M 3,727.57M 4,463.61M 4,728.33M
Total liabilities 1,928.62M 1,790.36M 1,557.64M 1,584.92M 1,507.30M
Total equity 1,489.72M 1,737.49M 2,096.66M 2,798.78M 3,147.57M
Operating cash flow 442.48M 563.52M 614.93M 650.57M 742.48M

Valuation Measures

Dec 2018
PER27.02
ROA13.58%
ROE20.98%
Operating margin15.41%
Profit margin10.11%

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 (7.1%)
  • LG Household & Health Care Ltd. (6.1%)
  • T. Rowe Price International Ltd. (3.1%)
  • Invesco Advisers, Inc. (2.1%)
  • The Vanguard Group, Inc. (1.5%)
  • BlackRock Fund Advisors (1.4%)
  • Harding Loevner LP (1.1%)
  • Norges Bank Investment Management (1.0%)
  • Capital Research & Management Co. (World Investors) (0.7%)

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

  • MiGen Story Co. Ltd.
  • Rucipello Korea, Inc.
  • K&I Co., Ltd.
  • 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

  • KT & G Corporation
  • IT'S HANBUL CO. LTD.
  • ABLE C&C
  • Coty Inc. Class A
  • Revlon, Inc. Class A
  • AK Holdings, Inc.
  • CLIO Cosmetics co., Ltd
  • Coreana Cosmetics Co., Ltd
  • Hankook Cosmetics Co., Ltd
  • Leaders Cosmetics Co., Ltd
  • Naturecell Co., Ltd.
  • DongKook Pharmaceutical Co., Ltd.
  • GMP Co., Ltd.
  • Korea Cast Iron Pipe Ind. Co., Ltd.
  • KODI CO., LTD.
  • DongKoo Bio & Pharm Co. Ltd.
  • Wooree Lighting Co., Ltd.
Last Updated on 19 Aug, 2019

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