SEOUL, Oct. 22 (Yonhap) — South Korea’s No. 2 cosmetics producer LG Household & Health Care Ltd. said Thursday its third-quarter net profit rose 6.7 percent from a year earlier thanks to solid performance in its non-cosmetics business.
Net income amounted to 231.7 billion won (US$204.1 million) in the July-September period, compared with 217.1 billion won the previous year, the company said in a regulatory filing. Compared with three months earlier, net profit rose 13.2 percent.
Operating profit rose 5.1 percent on-year to 327.6 billion won in the cited period, and revenue increased 5.4 percent to a quarterly record high of 2.07 trillion won.
The operating profit was 1.6 percent higher than the average estimate, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. The estimate of net profit was not available.
Industry watchers said LG Household & Health Care probably continued to outperform industry leader Amorepacific in third quarter as its diversified business portfolios — cosmetics, household goods and beverage segments — helped it stave off crushing impacts of the new coronavirus.
The country’s major cosmetics makers have been suffering business setbacks mainly because local duty-free operators, key sales channels of the cosmetics makers, took a beating from the new coronavirus outbreak.
Amid the COVID-19 pandemic, sales of its beauty-product business inched down 1.5 percent on-year to 1.44 trillion won, the company said.
As the Chinese economy is reviving from the virus fallout, sales of LG Household’s high-end skincare lineup — the History of Whoo — and other brands posted some 22 percent growth in China.
The company’s household goods and beverage business continued to log robust growth.
Sales of its household goods segment rose 26.8 percent on-year to 508.8 billion won in the third quarter.
The beverage business logged a 3.8 percent on-year increase in sales to 418 billion won as online demand for its products and delivery services remained solid despite the longest-ever rainy season and typhoons.