LG H&H (051900) Q3 2025 earnings summary

Executive summary

• 3Q 2025 sales declined 7.8% year-over-year to 1,580bn KRW, with operating profit down 56.5% to 46bn KRW and net profit down 68.2% to 23bn KRW.

• Year-to-date (YTD) sales fell 6.1% to 4,883bn KRW, operating profit dropped 41.4% to 243bn KRW, and net profit decreased 43.7% to 165bn KRW.

• Operates in Beauty, HDB, and Refreshment segments, with 2024 sales mix: Beauty 42%, HDB 31%, Refreshment 27%.

• Maintains strong domestic leadership and is expanding global presence, especially in luxury and premium beauty brands.

• Overseas sales grew 6.6% in 3Q and 3.5% YTD, now representing 31% and 32% of total sales, respectively.

Financial highlights

• Gross profit for 3Q 2025 was 750bn KRW, down 14.5% year-over-year; gross margin declined.

• 2025 Q3 consolidated revenue: ₩4,882.7B; operating profit: ₩243.4B; net profit: ₩165.4B.

• EPS for 2025 Q3: ₩9,042, down from ₩11,281 in 2024.

• Cash and cash equivalents decreased to 998bn KRW as of September 2025.

• Debt-to-equity ratio improved to 24.9% from 30.2% at year-end 2024.

Outlook and guidance

• Targets further global expansion, especially in China, North America, and Japan.

• Plans to enhance digital and e-commerce channels and invest in premium/luxury brands.

• Committed to 2050 carbon neutrality and 45% emission reduction by 2030.