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    Top Companies Report

    10. LG Household & Healthcare

    ...

    10. LG Household & Healthcare
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    08.03.18
    Korea
    www.lgcare.com

    Sales: $4.3 billion for household and personal care products. Corporate sales: $5.3 billion.

    Key Personnel: Suk Yong Cha, vice chairman, chief executive officer and president; Sung Huh, vice president and chief financial officer.

    Major Products: Cosmetics—The History of Whoo, O Hui, SU:M37, Belif, Davi, Frostine, Kachet, Beyond, Dermalift, ChungYoonJin, Tuneage, Isa Knox, Sooryehan, Lacvert, Cathycat Vonin, Carezone, The Saga of Xiu, TheFaceShop, VDL, VOV, Philosophy; Hair Care—Elastine, Reen, Organist, Silk Therapy; Oral Care—Perioe, Bamboo Salt; Skin Care—OntheBody; Aromatics—Happybreeze, Partel, Healing&Nature; Laundry—Saffron, Hanip, Tech, Super Ti; Cleaning—Homestar, Insect Zero, Safe, Jayeonpong, PongPong.
    New Products: Avon Japan (acquisition).

    Comments: Corporate sales rose 2.9% to a record. Strong demand for luxury cosmetics lifted personal care sales by 4.9%. In fact, Whoo became one of Asia’s top cosmetics brands as its global sales surpassed 1 trillion won for two consecutive years, reaching 1.4 trillion won in 2017. Su:m’s global sales surpassed 380 billion won, strengthening its position as the second major brand. China cosmetics sales increased 34% year-over-year from continuous demand growth from on-shore consumers.

    Sales of household products fell less than 1%. LG blamed the slight decline on lower inbound Chinese traffic.

    Q1 2018 corporate sales rose 6.5%, and making it 50 quarters in a row of sales increases dating all the way back to Q3 2005, according to LG. Cosmetic sales increased 12% due to demand for luxury cosmetics, especially in China where sales soared 89%. However, sales of household products fell 4.5%, due to a mature and unpredictable domestic market.
    In April, LG agreed to acquire 100% of Avon Japan for about $93 million. Avon is ranked No. 21 in the market and the move dovetails with LG’s strategy of expanding in Japan via acquisition.

    The company purchased Ginza Stefany in 2012 and Everlife in 2013.
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