This article was published on May 25, 2026, at 5:12 p.m. on Signal, a capital markets compass.
LG Household & Health Care (051900) is pursuing the sale of Haitai htb to strengthen its competitiveness in the beauty sector by divesting non-core business units. Once a traditional cosmetics powerhouse alongside Amorepacific, LG H&H is now seen as falling behind emerging beauty companies such as APR (278470) and Goodai Global, as indie brands have risen to become the mainstream of the market. Lee Sun-joo, who took office in October last year as the relief pitcher for the beauty business, succeeded in turning the company to profit in the first quarter of this year, but opinions are divided in the securities industry over whether the performance will lead to a sustained rebound. Against this backdrop, the company is expected to pursue additional mergers and acquisitions (M&A) of beauty companies after selling its food and beverage (F&B) subsidiaries.
According to investment banking (IB) industry sources on the 25th, LG H&H has been steadily reviewing portfolio rebalancing measures for its F&B subsidiaries since last year. At that time, several affiliates including Haitai htb and Coca-Cola were placed on the list of potential sale candidates, and with the decision to sell Haitai htb this time, the company has begun full-scale restructuring.
LG H&H is sounding out the sale primarily with financial investors (FIs) that have produced results in the F&B sector. The company has proposed a target price of around 300 billion won and appears more focused on closing the deal than on securing a high price. "The F&B sector has rapidly changing trends, and there are many assets currently on the market," an IB industry official said. "Whether the sale closes will depend on how investors view Haitai htb's growth potential."
LG H&H is expected to pursue M&A in the beauty sector after divesting its F&B affiliates and securing funds. In this context, the company recently halted its review of acquiring skincare brand Torriden. As of the end of the first quarter of this year, LG H&H's cash and cash equivalents on a separate basis stood at 595.9 billion won, and the company is reported to have felt the burden of Torriden's price tag, which was discussed in the 500 billion won range. Securing additional funds through subsidiary sales has reportedly been prioritized.
The market views that LG H&H will focus on strengthening competitiveness in the beauty sector through two approaches: organic brand growth and M&A. Through last year, LG H&H's beauty revenue had been cut in half over five years, while global competition from K-beauty brands such as APR has intensified further. The beauty business, which had fallen into such a slump, has been improving since CEO Lee took office. Lee is a cosmetics marketing expert who boosted sales of the U.S. brand Kiehl's at L'Oreal Korea and later led the U.S. expansion of mask pack brand Mediheal.
LG H&H succeeded in a rebound, posting consolidated revenue of 1.5766 trillion won and operating profit of 107.8 billion won in the first quarter of this year. Although these figures represent declines of 7.1% and 24.3%, respectively, from the first quarter of last year, the significance lies in the swing back to profit from the company's first-ever operating loss in the fourth quarter of last year. "While LG H&H's first-quarter performance has improved, it is true that the company is showing weaker results compared with other beauty companies," a beauty industry official said.
In the beauty segment in the first quarter, the company posted revenue of 771.1 billion won and operating profit of 38.6 billion won, significantly exceeding market expectations. Although LG H&H is reducing its dependence on China and focusing on expanding U.S. sales, the market cites the return to profit at its China subsidiary as the background for the earnings surprise. "The China subsidiary, which is the main channel for cosmetics, has been repeatedly recording large losses and then improving its profit and loss," said Bae Song-yi, a researcher at Mirae Asset Securities. "Momentum will be delayed until earnings visibility is restored."
