LG H&H beverage unit posts first loss since Coca-Cola deal

A glass of Coca-Cola with ice and Coca-Cola can (Getty Images)

LG Household & Health Care reported the first quarterly operating loss in its beverage division since acquiring the local Coca-Cola bottling business nearly two decades ago, a setback that prompted the company to trim headcount in the unit.

The company said its refreshment segment, which includes beverage subsidiaries such as Coca-Cola Beverage Company and Haitai HTB, recorded an operating loss of 9.9 billion won ($6.7 million) in the fourth quarter of 2025.

It marked the first such loss since LG H&H acquired Coca-Cola Korea Bottling Co. in 2007 and began manufacturing and distributing Coca-Cola products in Korea. For the full year, the refreshment segment posted revenue of 1.77 trillion won and an operating profit of 142 billion won, down 2.9 percent and 15.5 percent from a year earlier.

Coca-Cola Beverage Company launched an early retirement program late last year for employees in sales, logistics and corporate staff functions.

“The move is aimed at making the workforce in the refreshment division more efficient,” a company official said. “We continue to face challenges as the distribution environment changes.”

The beverage unit has faced pressure from shifting consumer tastes and retail channels, as younger consumers increasingly favor low-sugar or functional drinks over traditional sugary sodas, industry officials said.

Amid weaker performance, LG H&H has been reviewing its beverage portfolio, including a potential sale of Haitai HTB, which it acquired in 2010 from Asahi Breweries and other shareholders.

While the potential deal drew interest from industry players and financial investors, no negotiations are currently underway, according to the company. The company said its Coca-Cola operations have never been considered for sale.

At the same time, the company is undergoing a companywide restructuring amid a sharp earnings decline. In 2025, LG H&H reported revenue of 6.36 trillion won, down 6.7 percent, while operating profit fell 62.8 percent to 170.7 billion won, with the beauty division posting an annual operating loss of 97.6 billion won.