LG Household & Health Care Co., South Korea's No. 2 cosmetics maker, on Friday reported firm growth in its first-quarter earnings, shrugging off concerns over a setback from China's boycott on Korean-made goods amid a diplomatic standoff.
The company chalked up 180.6 billion won ($159 million) in net income in the January-March period, up 12.5 percent from 160.6 billion won the previous year, it said in a regulatory filing.
The figure beats the market consensus of 175.3 billion won estimated by local brokerages in a poll by Yonhap Infomax, the financial news arm of Yonhap News Agency.
Its operating profit soared 11.3 percent to 260 billion won in the first quarter, with sales reaching 1.6 trillion won, up 5.4 percent from a year ago.
The overall growth seen in all three business divisions -- cosmetics, household products and beverages -- led to a record quarterly performance, LG Household said in a release.
Its mainstay cosmetics unit posted a 12.4 percent on-year jump to 176.8 billion won in operating profit, with the sales gaining 7.2 percent to 854.2 billion won from a year ago.
Despite jitters from a rapid drop in Chinese tourists following Beijing's ban on selling tours to Korea from mid-March, robust sales of its premium skin care products helped the company cushion the damage, analysts said.
Also, the fact that China's hostile policies on Korea began to only take effect from last month gave the company some respite, they added.
Its two main high-end skin care lineups -- The History of Whoo and Su:m 37 -- each recorded a 20 percent and 23 percent on-year increase in first-quarter revenues. LG Household's cosmetics part accounts for 52 percent of its entire revenue.
Its shipments to China rose 25 percent over the cited period, thanks to an aggressive expansion of its retail channels at major department stores, it added. The overall overseas sales also hiked 22 percent on-year in the cited months.
The operating income of household products inched up 1.2 percent to 54.9 billion won, with sales climbing 2.7 percent to 430.4 billion won.
Its beverages unit logged a 28.4 percent on-year gain to 28.3 billion won in operating profit, boosted by the release of new lineups. Its sales came to 316.1 billion won, up 4.1 percent from a year earlier, according to the company.
Shares of LG Household closed up 2.45 percent to 866,000 won on the main bourse on Friday, while the broader Kospi shed 0.18 percent. The earnings results were disclosed during trading hours. (Yonhap)