LG H&H (051900) Q2 2026 earnings summary

Executive summary

• 2Q26 sales rose 3.3% year-over-year to 1,657bn KRW, with operating profit up 87.5% to 103bn KRW and net profit up 101.2% to 78bn KRW.

• Overseas sales grew 12.6% YoY, now comprising 35% of total sales, with strong growth in North America (+47.3%).

• Beauty segment returned to profitability, HDB segment saw double-digit profit growth, while Refreshment segment faced profit decline.

Financial highlights

• Gross profit increased 6.9% YoY in 2Q26, while operating margin improved from 3.4% to 6.2%.

• 1H26 sales declined 2.1% YoY, but operating profit rose 6.8% and net profit increased 17.1%.

• Cash and cash equivalents rose by 240bn KRW from Dec'25 to Jun'26.

Outlook and guidance

• Focus on scaling hero brands in North America and Japan, leveraging digital marketing and offline expansion.

• Continued investment in R&D and tech-driven product launches in beauty and wellness.