LG H&H’s Q2 revenue drops as a result of market competitors, home enterprise restructuring

The South Korean firm’s monetary outcomes had been introduced on 31 July.

In Q2 2025, it recorded general gross sales of KRW1.60tn (USD1.14bn) and working revenue of KRW54.8billion (USD39m), marking a lower of 8.8% and 65.4% respectively, in comparison with the identical interval final yr.

For its magnificence division, gross sales in Q2 2025 decreased 19.4% year-on-year to KRW604.6bn (USD432m), and working revenue turned to a lack of KRW16.3bn (USD11.67m).

Based on LG H&H, though key channels akin to home well being and wonder retailers, Amazon in North America, and the Japanese market continued to develop quickly, intensifying market competitors throughout the board led to elevated price burdens.

Moreover, the restructuring of conventional channels within the native market, akin to duty-free retailers, additionally contributed to the decline in efficiency.

The corporate’s Dwelling Care & Every day Magnificence (HDB) division includes primarily mass private care merchandise, together with oral care and hair care.

In Q2 2025, HDB’s gross sales reached KRW542bn (USD387m), a 2% improve year-on-year, however working revenue fell 7.1% to KRW28.6 billion (USD20.4m).

“Whereas home gross sales continued to stoop, sturdy responses for premium manufacturers in abroad markets drove gross sales development. Dr.Groot achieved an 800% year-on-year gross sales improve within the first half of this yr alone, pushed by fast recognition on North American Amazon and TikTok,” LG H&H acknowledged.

As well as, oral care model EUTHYMOL can also be strengthening its model place, specializing in the Japanese and North American markets.

However, the lower in working revenue is alleged to be as a result of elevated mounted prices and expanded advertising and marketing investments.

Future-focused investments

LG H&H has continued to make “future-focused investments”, together with the debut of luxurious skincare model The Whoo within the west.

The model entered the North American market with the launch of its premium anti-ageing line named Hwanyu, which implies “a return to youth” in Korean, at Frieze Artwork Truthful, a world-renowned annual occasion held in New York.

Focused at rejuvenating and revitalising the pores and skin, the formulation on this vary incorporate components like wild ginseng and a posh containing over 70 oriental herbs to handle varied indicators of ageing.

The Whoo additionally secured a brand new development engine by means of the acquisition of LG Electronics’ magnificence tech model, LG Pra.L, in June this yr.

LG Pra.L has since launched a brand new dwelling magnificence machine, Superform Galvanic Booster, alongside a devoted skincare line referred to as Glasslike.

The small and moveable machine is designed to be a one-minute day by day skincare routine, with key features together with boosting product absorption and enhancing outcomes when used with Glasslike merchandise.

“Our high precedence is to enhance elementary company worth, together with augmenting our present companies and securing new development engines by means of mergers and acquisitions (M&A). We’re sustaining the identical proactive stance towards M&A as now we have up to now to bolster future development,” LG H&H stated.