LG Household & Health Care (LG H&H), a major player in South Korea’s travel retail beauty sector, posted a -7.1% year-on-year fall in revenues to KRW1.6 trillion (US$1.07 billion) while operating profit took a sizable hit, declining -24.3% to KRW107.8 billion (US$73.1 million).
The brandowner of a star-studded portfolio embracing The History of Whoo, O HUI, SU:M37, belif, THEFACESHOP and hair-loss label Dr. Groot, attributed the decreases to a strategic restructuring of Korean retail channels, particularly duty free, a channel in which LG Household & Health Care has sought to control distribution much more tightly from its volume-driven recent past.
Quarter-on-quarter the picture was rosier with sales rising +7% in Q1 compared with Q4 2025 and operating profit turning positive. Operating profit margin improved significantly from -4.9% to 6.8%. The company lauded strong overseas business performance for beauty brands including Dr. Groot.
An LG Household & Health Care spokesperson said, “Since last year, the intensive restructuring of domestic distribution channels, particularly in duty free, has gradually begun to yield results. We will accelerate brand innovation based on differentiated, R&D-driven product competitiveness and continue strategic growth focused on global and digital markets.”
The preliminary Q1 results, revealed plans to accelerate innovation across brands and distribution channels, supported by the company’s research and development (R&D) capabilities.
By region, sales in the key export markets of China and Japan fell -14.4% and -13% year-on-year, respectively, from a high base. North America posted a notable +35% surge, driving a +0.9% year-on-year increase in overall overseas revenue – considered a key future growth driver.
Performance by business division
The group’s key beauty segment in Q1 was impacted by adjustments in duty-free volumes and offline store optimisation.
Revenue reached KRW771.1 billion (US$523.6 million), down -12.3% year-on-year, while operating profit fell -43.2% to KRW38.6 billion (US$26.2 million), as increased marketing investment to secure mid- to long-term growth also weighed on profitability.
Despite the overall market softness, key brands including Dr. Groot, Euthymol, The History of Whoo and VDL performed strongly in global markets, supporting overseas growth. Aligned with its vision as a ‘science-driven beauty and wellness company’, the group is enhancing brand competitiveness across both online and offline international channels.
The Whoo earned Korea’s IR52 Jang Young-sil Award for its NAD anti-ageing and ‘Skin Longevity’ research, while Dr. Groot launched on Sephora US online in March with plans for full North American store roll-out in August. CNP and belif expanded their presence at Ulta Beauty in the US.
