LOTTE WELLFOOD Posts Q3 "Operating Profit" of KRW 89.9B... "Overseas Business" Booms, Led by India

3Q Revenue: KRW 1.1739 Trillion · Overseas Revenue: KRW 271 Billion
"Expand Our Presence in Global Markets"

LOTTE WELLFOOD reported consolidated operating profit of KRW 89.9 billion for the third quarter of this year, up 29.7% from the same period last year, driven in part by continued growth in its global business.

On Nov. 11, LOTTE WELLFOOD said revenue rose 1.5% year over year to KRW 1.1739 trillion and net profit increased 4% to KRW 51.9 billion. For the first nine months of the year, revenue totaled KRW 3.3569 trillion and operating profit KRW 190.4 billion, up 5% and 58.7%, respectively, from the same period last year. The cumulative operating margin for the first nine months was 5.7%.

Growth at major global hubs drove increases in revenue and operating profit. Strong growth at overseas subsidiaries, particularly in India and Kazakhstan, offset lower revenue resulting from profitability-focused operational streamlining in the domestic market, supporting consolidated revenue.

In India, the stabilization of the fourth production line for Lotte Choco Pie and the expansion of sales regions contributed to results, while Kazakhstan continued to post steady growth in domestic demand and exports. Overseas subsidiaries recorded revenue of KRW 271 billion in the third quarter, up 16.1% year over year, and operating profit of KRW 23.1 billion, up 137.8%. For the first nine months, revenue and operating profit at overseas subsidiaries reached KRW 852.7 billion and KRW 64.7 billion, respectively, increases of 20.5% and 105.4% year over year.

In the domestic market, despite a contraction in the ice cream market and cost pressures from key raw and subsidiary materials such as packaging materials and raw milk, the company pursued profitability-focused operational streamlining by reorganizing low-efficiency products and sales channels and improving productivity.

LOTTE WELLFOOD plans to sustain its growth momentum by strengthening its competitiveness in global markets and targeting new domestic growth channels, even as uncertainty persists amid geopolitical instability and volatility in raw material prices caused by unusual weather conditions.

The company plans to continue investing in key global growth hubs and expanding its channels. In India, it will focus on stabilizing the fourth Choco Pie production line and expanding quick commerce for ice cream. It also plans to broaden the distribution of Lotte-branded products through major subsidiaries in Kazakhstan, Russia and other markets. For exports, it is accelerating efforts to expand local distribution channels alongside marketing linked to K-culture.

In the domestic business, the company plans to actively capture peak-season demand for Pepero Day in the fourth quarter and strengthen tailored strategies for new growth channels, including warehouse clubs and household goods stores, to boost competitiveness. It will also continue efforts to improve its business structure with a focus on profitability.

A LOTTE WELLFOOD representative said, "The strengthening of our fundamental competitiveness through continuous business structure upgrades, along with strong performance by overseas subsidiaries in countries such as India and Kazakhstan, drove our third-quarter results. We will continue to pursue qualitative growth by strengthening profitability in the domestic market and expanding our presence in global markets."

This content was produced with the assistance of AI translation services.