Lotte Chilsung Reports 32% Drop in Q1 Operating Profit Due to Domestic Slowdown and Cost Increases
Creatrip Team
a year ago
Lotte Chilsung Beverage faced challenges in the first quarter of this year due to a domestic economic slowdown and rising costs. Operating profit decreased by 31.9% to 25 billion won, while sales slightly fell to 910.3 billion won. The beverage sector saw revenue drop by 5.4% due to decreased domestic consumption and increased costs for materials like sugar and coffee. Despite this, energy drink sales increased by 11.3%, and exports of drinks like Milkiss and Aloe Juice rose by 7.0%. In the liquor sector, domestic sales decreased, but exports to markets like the US and Europe increased by focusing on products like Soonhari. Lotte Chilsung plans to launch new products and focus on improving global market presence and profitability. "Soonhari" and "Chumchurum" are popular Korean alcoholic drinks often enjoyed in social settings. The company aims to enhance manufacturing capacity and global partnerships, highlighting the importance of international sales in their strategy.
