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[Alpha Biz=(Chicago) Reporter Kim Jisun] Lee Jung-ae, president of LG Household & Health Care, purchased treasury stocks worth 200 million won, drawing attention to the background.
According to the industry on the 3rd, LG Household & Health Care announced on the 1st that President Lee bought 500 shares of the company in the market.
The acquisition price is 443,517 won per share, and the total purchase size is 221,758,500 won.
President Lee did not previously hold shares in LG Household & Health Care.
LG Household & Health Care conducted voluntary retirement for heads of departments aged 50 or older and team leaders in June this year. It is the first time since its foundation that LG Household & Health Care received voluntary retirement.
LG Household & Health Care is also planning to withdraw offline franchise businesses such as The Face Shop and Nature Collection.
However, it seems that it is not easy for LG Household & Health Care to rebound due to external adverse effects such as sluggish sales in the Chinese market. LG Household & Health Care recorded 1.807 trillion won in sales in the second quarter of this year, down 30 percent from a year earlier. Operating profit fell 27.1% to 157.8 billion won.
In particular, sales of cosmetics declined significantly. Despite strong domestic channel performance, sales fell due to delayed recovery in Chinese consumption, which led to a double-digit drop in duty-free sales, while Chinese sales showed single-digit reverse growth. Operating profit also decreased due to slowing performance of major channels and expenses related to business efficiency.
LG Household & Health Care plans to expand its portfolio of overseas markets such as North America from a mid- to long-term perspective to reduce its dependence on China and focus on improving profitability by renewing products and strengthening online.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
