Lotte Wellfood disclosed on the 11th its third-quarter consolidated preliminary results, reporting revenue of 1.1739 trillion won and operating profit of 89.9 billion won. The figures represent year-over-year increases of 1.5% and 29.7% respectively, driven by strong overseas business performance. The South Korean food manufacturer's results aligned with market expectations, as analyst consensus projected Q3 revenue of 1.1968 trillion won and operating profit of 86.5 billion won based on forecasts from eight major domestic securities firms.
Lotte Wellfood Reports Q3 Revenue Growth of 1.5% Year-Over-Year
Lotte Wellfood recorded consolidated revenue of 1.1739 trillion won in the third quarter, marking a 1.5% increase compared to the same period last year. Operating profit reached 89.9 billion won, up 29.7% year-over-year. The company attributed the performance improvement to global business growth and strengthened fundamental competitiveness activities.
Overseas Operations Generate 271 Billion Won Revenue in Third Quarter
The company's overseas subsidiaries posted third-quarter revenue of 271 billion won, representing a 16.1% increase from the prior-year period. Operating profit from overseas operations totaled 23.1 billion won, surging 137.8% year-over-year. On a cumulative nine-month basis, overseas revenue reached 852.7 billion won and operating profit hit 64.7 billion won, reflecting increases of 20.5% and 105.4% respectively.
In India, stabilization of the fourth production line for Lotte Choco Pie and expanded regional coverage contributed to results. Kazakhstan operations maintained steady domestic demand alongside export growth momentum.
Company Implements Cost Efficiency Measures Amid Raw Material Pressures
Lotte Wellfood enhanced fundamental competitiveness through operational efficiency improvements in the domestic market. Despite contraction in the ice cream market due to unfavorable weather conditions, the company strengthened market responsiveness by deploying core brand-focused marketing strategies.
Facing increased costs for packaging materials and raw milk, the company sustained profitability by continuing rationalization of low-efficiency stock keeping units (SKUs) and sales channels, alongside productivity improvement initiatives.
Lotte Wellfood Announces Plans to Expand Warehouse-Format Retail Channels
The company stated it will pursue growth momentum by targeting emerging domestic channels including warehouse-format discount stores and lifestyle product retailers. For global operations, Lotte Wellfood plans to focus investments on core growth hubs and expand mainstream channel penetration.
Lotte Wellfood shares traded at 120,200 won as of 1:50 PM on the announcement day, up 1.18% from the previous session.
FAQ
What were Lotte Wellfood's third-quarter financial results?
Lotte Wellfood reported third-quarter revenue of 1.1739 trillion won and operating profit of 89.9 billion won on the 11th. Revenue increased 1.5% year-over-year while operating profit rose 29.7% compared to the same period last year.
How did Lotte Wellfood's overseas business perform in the third quarter?
Overseas subsidiaries generated 271 billion won in revenue during the third quarter, up 16.1% from the prior year. Operating profit from overseas operations reached 23.1 billion won, representing a 137.8% year-over-year increase, driven by performance in India and Kazakhstan markets.
What cost management actions did Lotte Wellfood take in the third quarter?
The company implemented rationalization of low-efficiency product lines and sales channels while continuing productivity improvement initiatives to maintain profitability despite increased costs for packaging materials and raw milk.
