LG H&H (051900) investor relations material

Executive summary

• Q1 2026 sales reached KRW 1,577bn, down 7.1% year-over-year, with operating profit at KRW 108bn, a 24.3% decline year-over-year.

• All business segments—Beauty, HDB, and Refreshment—experienced year-over-year declines in sales and operating profit, with Beauty most impacted.

• Overseas sales grew 0.9% year-over-year, now comprising 34% of total sales, with notable growth in North America (+35%).

• Net income attributable to owners was KRW 84.1 billion, with basic EPS of KRW 5,017.

• The company maintained a strong cash position with KRW 1,235.1 billion in cash and cash equivalents at quarter-end.

Financial highlights

• Gross profit decreased 7.4% year-over-year to KRW 813bn.

• Net profit fell 14.2% year-over-year to KRW 89bn.

• Operating profit margin dropped from 8.4% to 6.8% year-over-year.

• Gross margin was 51.6% (Q1 2025: 51.7%).

• Cash flows from operating activities were KRW 105.7 billion.

Outlook and guidance

• Focus on expanding overseas, especially in North America and Japan, leveraging hero brands and new product launches.

• Continued investment in R&D and marketing to enhance brand value and competitiveness.

• Plans to increase dividend payout ratio to 30% of adjusted net income and continue share buybacks.

• Emphasis on strengthening premium brand portfolios and expanding digital and global channels.