Lotte Chilsung Sees Profit Drop as Overseas Sales Grow
Creatrip Team
a month ago
Lotte Chilsung Beverage reported a decline in domestic performance last year amid weak local consumption, high inflation, and currency pressures, leading to a 9.6% drop in operating profit to KRW 167.2 billion and a 1.3% fall in consolidated sales to KRW 3.9711 trillion. Fourth-quarter results turned slightly negative with an operating loss; one-off costs like voluntary retirement also weighed on earnings. Beverage sales fell 5% (KRW 1.8143 trillion) with most categories down, though energy drinks and the zero-calorie “Near Water”(a zero-calorie beverage line) grew. Alcohol sales also fell, but exports—helped by the popularity of K-content and expansion with U.S. distributor E&J Gallo—lifted brands like “Soonhari”(순하리) and aided global sales growth. The global segment (including the Philippines, Pakistan, Myanmar) grew: sales up 9.5% to KRW 1.5344 trillion and operating profit up 42.1%. The company plans cost and productivity improvements, new carbonated and low-/no-alcohol products, logistics center openings (RDC in Gangneung, CDC in Daejeon), and aims for KRW 4.1 trillion sales and KRW 200 billion operating profit this year.
