LG Household & Health Care’s beverage business goes against the trend alone... no solution yet despite worsening profitability

LG Household & Health Care’s refreshment unit saw a slight sales increase in Q2, but operating profit dropped sharply, extending a three-year downtrend.

Rising raw material costs, a Korea-only bottling structure, and the growth of low-cost coffee and zero-sugar drinks have hurt performance.

The company is considering reducing its beverage exposure, selling Haitai HTB, and expanding new products.

The move highlights both the beverage business as a drag on profitability and the company’s broader portfolio rebalancing effort.