[Edaily Reporter KYUNG GYEYOUNG ] In the second quarter, LG H&H’s sales in North America surpassed its sales in China for the first time. This is seen as a sign that the company’s strategy to restructure its global business portfolio is beginning to bear fruit.

LG H&H(051900)The company announced on the 29th that its consolidated operating profit for the second quarter was 102.8 billion won, an 87.5% increase compared to the same period last year. Preliminary figures for the same period show revenue rose 3.3% to 1.6574 trillion won, while net income increased 101.2% to 77.6 billion won.

Overseas sales rose 12.6% from the second quarter of last year to 584.5 billion won, accounting for 35% of total company sales. Sales in North America reached 205.8 billion won, a 47.3% increase from the same period, surpassing sales in China (which fell 5.0% to 176.0 billion won). This marks the first time since LG H&H was spun off as an independent entity that North American sales have exceeded those in China. LG H&H assessed that innovative products incorporating its unique research and development (R&D) technology are proving competitive in the North American market. The company explained that operating profit improved significantly even when excluding the one-time factor of U.S. tariff refunds.

LG H&H highlighted that its growth drivers are diversifying from China to key global markets. While its China business was sluggish, its North American business grew enough to offset this, leading to a significant improvement in profitability. The operating profit margin rose to 6.2%, up 2.8 percentage points from the second quarter of last year.

By business segment, the Beauty division recorded sales of 818.4 billion won, up 3.9% year-over-year, and an operating profit of 44.4 billion won, marking a return to profitability. This was driven by steady growth both online and offline from major brands such as Dr. Groot—which is driving the popularity of K-haircare—as well as Yushimol, Dominas, VDL, and HINS. This was largely due to the company’s strategic realignment of its brand portfolio in line with its new vision of becoming a “Science-Driven Beauty & Wellness Company,” coupled with the strategic cultivation of high-potential channels such as Health & Beauty (H&B) stores.

The Home Care & Daily Beauty (HDB) division recorded sales of 377.6 billion won, up 5.5%, and operating profit of 22.3 billion won, up 23.1%. Sales of functional products increased in domestic channels such as online platforms and Costco.

In the Refreshment division, revenue was 461.4 billion won and operating profit was 36.1 billion won, representing a 0.5% increase and a 15.1% decrease, respectively, compared to the same period last year. Profitability deteriorated as cost pressures intensified due to rising prices of raw materials and components stemming from political instability in the Middle East.

LG H&H plans to accelerate its expansion into offline channels, including the launch of Dr. Groot at Sephora stores in the U.S. starting next month. For Yushimol and Hins, the company plans to expand brand awareness in Japan.

An LG H&H official stated, “Trend-setting products launched through our differentiated R&D capabilities are receiving a positive response from customers,” adding, “We will expand investments in high-growth-potential markets and core channels to lead the way in ‘Intelligent K-Beauty’ based on scientific research.”

In addition, LG H&H’s board of directors resolved today to pay an interim dividend of 1,500 won per share for both common and preferred stock for 2026.