Cumulative annual revenue reaches KRW 6.36 trillion; earnings impacted by distribution restructuring and one-off costs
LG Household & Health Care (LG H&H) reported an operating loss in the fourth quarter of 2025, as both annual revenue and profit declined amid ongoing distribution restructuring and one-time expenses. The company announced its preliminary Q4 and full-year 2025 results on January 28 via Korea’s electronic disclosure system. LG H&H posted Q4 revenue of KRW 1.4728 trillion, down 8.5% year-on-year, while operating profit fell to a loss of KRW 72.7 billion, marking a return to the red.
Despite solid performance from major Premium Beauty and Daily Beauty brands in global markets, company-wide results deteriorated due to continued distribution channel restructuring and one-off costs related to workforce optimization, including voluntary retirement programs both in Korea and overseas.
For the full year, revenue totaled KRW 6.3555 trillion, down 6.7% year-on-year, while operating profit declined 62.8% to KRW 170.7 billion.
Oversea Performance
In Q4, overseas revenue rose 7.9% in the U.S. and 6.0% in Japan, supported by strong sales of key brands such as Dr. Groot and U.Smile. However, sales in China declined 16.6% due to a high year-ago comparison base, resulting in an overall 5.0% decrease in total overseas revenue for the quarter.
On an annual basis, overseas revenue increased 1.2%, driven by continued growth in the U.S. and Japan.
Segment Performance
Beauty Division
Q4 revenue declined 18.0% year-on-year to KRW 566.3 billion, while operating profit fell to a loss of KRW 81.4 billion. Overseas strategic brands such as The Face Shop and VDL showed sales growth, contributing to geographic diversification. Key brands including The History of Whoo and LG Pra.L strengthened market presence through new product launches. However, performance was weighed down by duty-free inventory adjustments and substantial one-off costs related to workforce restructuring.
Full-year Beauty revenue declined 16.5% to KRW 2.35 trillion, with an operating loss of KRW 97.6 billion.
HDB (Home Care & Daily Beauty) Division
Q4 revenue increased 2.9% to KRW 523.0 billion, while operating profit declined 5.5% to KRW 18.7 billion. Growth was supported by enhanced marketing for Dr. Groot and U.Smile, along with expanded offline distribution in North America and Japan. Operating profit declined due to increased marketing for premium brands and one-off personnel-related costs.
For the full year, revenue rose 2.8% to KRW 2.2347 trillion, and operating profit increased 3.1% to KRW 126.3 billion.
Refreshment Division
Q4 revenue fell 6.7% to KRW 383.5 billion, while operating profit turned negative at KRW 9.9 billion. Although key brands such as Coca-Cola Zero and Monster Energy maintained growth, results were impacted by a domestic economic slowdown and seasonal off-peak demand.
Full-year revenue declined 2.9% to KRW 1.7707 trillion, and operating profit decreased 15.5% to KRW 142.0 billion.
Outlook
To drive a turnaround, LG H&H is implementing structural changes across its businesses. CEO Lee Sun-joo has set the company’s 2026 management vision as a “Science Driven Beauty & Wellness Company,” targeting mid-single-digit revenue growth.
The company plans to strategically expand high-growth channels such as digital commerce and health & beauty stores, while strengthening its presence in key overseas markets including North America and Japan.
An LG H&H official stated, “We will focus on nurturing core brands in high-growth channels and regions, while enhancing our digital marketing capabilities to deliver a differentiated customer experience.”
