Business · Markets · 1 hr ago
LG Household & Health Care Misses Third-Quarter Profit Expectations
South Korea’s LG Household & Health Care reported third-quarter operating profit of 70.4 billion won, up 52.4% from a year earlier but 30.5% below analysts’ average forecast.
Korea Investment & Securities lowered its share price target from 340,000 won to 310,000 won, while keeping its buy rating.
The company’s beauty business, which had returned to profit in the first half, moved back into the red in the third quarter, recording an operating loss of 10.9 billion won.
The analyst also estimated that the China business lost about 20 billion won as sales fell during efforts to reshape its online operations.
Household goods met expectations, while weak beverage and beauty results weighed on performance; duty-free sales helped offset weakness elsewhere.
The company plans voluntary retirements in the fourth quarter, and the analyst expects related costs of about 40 billion won, with uncertainty around the beauty business’s results.
LG Household & Health Care’s third-quarter revenue and operating profit both fell short of analysts’ expectations.
The company reported revenue of 1.5774 trillion won, down 0.2% from a year earlier, and operating profit of 70.4 billion won.
Its operating profit was 30.5% below the market consensus, according to Korea Investment & Securities.
The beauty division returned to an operating loss, while the beverage division also underperformed.
On November 4, the company’s shares fell 11.07% during morning trading, and Korea Investment & Securities cut its target price while retaining a buy rating.
- Who
- LG Household & Health Care.
- What
- Its third-quarter revenue and operating profit missed market expectations.
- When
- The company disclosed preliminary results on November 3, 2026; its shares fell on November 4.
- Where
- South Korea’s stock market.
- Why
- Weak results in the beauty and beverage divisions weighed on performance; the beauty division returned to an operating loss.
This story does not have two clearly opposing sides.
LG Household & Health Care disclosed preliminary third-quarter revenue of 1.5774 trillion won and operating profit of 70.4 billion won.
Korea Investment & Securities cut its target price from 340,000 won to 310,000 won while maintaining a buy rating.
LG Household & Health Care shares fell 11.07% to 233,000 won in morning trading.
- Third-quarter revenue
- 1.5774 trillion won, down 0.2% year on year
- Third-quarter operating profit
- 70.4 billion won, up 52.4% year on year
- Operating-profit shortfall
- 30.5% below market consensus
- Beauty division
- Operating loss of 10.9 billion won
- Share price
- Down 11.07% to 233,000 won on November 4
- Korea Investment & Securities target price
- Cut from 340,000 won to 310,000 won
3 sources
What people are saying
The household goods division met market expectations, but the results of the beverage and beauty divisions were weak.
The beauty division, which succeeded in turning around in the first half, returned to a loss in the third quarter and became the main reason for the weakness in consolidated results.
LG Household & Health Care’s beauty division recorded an operating loss of 10.9 billion won in the third quarter.