LG H&H (051900) Q2 2026 earnings summary

Executive summary

• 2Q26 sales rose 3.3% YoY to 1,657bn KRW, with operating profit up 87.5% to 103bn KRW and net profit up 101.2% to 78bn KRW.

• Revenue for H1 2026 was KRW 3,234 billion, down from KRW 6,355 billion in FY2025, reflecting a significant YoY decline.

• Operating profit for H1 2026 was KRW 211 billion, up from KRW 171 billion in FY2025.

• Net income for H1 2026 was KRW 158 billion, a turnaround from a loss in FY2025.

• Overseas sales grew 12.6% YoY, now 35% of total sales, with strong growth in North America (+47.3%).

Financial highlights

• Gross profit increased 6.9% YoY in 2Q26; gross margin for H1 2026 was 51.8% with gross profit of KRW 1,675 billion.

• Operating margin improved from 3.4% to 6.2% in 2Q26; 1H26 operating margin was 6.5%.

• Cash and cash equivalents rose by 240bn KRW from Dec'25 to Jun'26, reaching KRW 1,326 billion.

• Basic EPS for H1 2026 was KRW 9,422, compared to a loss of KRW 5,980 in H1 2025.

• Dividends paid in H1 2026 were KRW 1,000 per ordinary share and KRW 1,050 per preferred share.

Outlook and guidance

• Focus on scaling hero brands in North America and Japan, leveraging digital marketing and offline expansion.

• Continued investment in R&D and tech-driven product launches in beauty and wellness.

• Mid-year dividend of KRW 25.1 billion to be paid in August 2026; payout ratio targeted at 30% of net income for 2025–2027.

• All treasury shares to be retired by end-2027 as part of shareholder return policy.