Lotte Wellfood posts 64.7 billion won operating profit in Q2 this year… up 89% from the same period last year

*This content was translated by AI.

Lotte Wellfood continued its recovery trend in performance for the second quarter of this year, driven by growth in overseas businesses and improved management efficiency.

According to the Financial Supervisory Service’s electronic disclosure system on the 7th, Lotte Wellfood’s consolidated sales for the second quarter reached 1.1557 trillion won, an 8.6% increase from the same period last year. Operating profit was 64.7 billion won, up 89% over the same period, with an operating profit margin of 5.6%.

Cumulative sales for the first half totaled 2.1831 trillion won, a 7% increase from the same period last year. Operating profit for the same period reached 100.5 billion won, up 98%, with an operating profit margin of 4.6%.

Notably, growth at key global hubs such as India and Kazakhstan drove performance improvements. Second-quarter sales by overseas subsidiaries amounted to 311.2 billion won, a 28% increase from the same period last year, while operating profit rose 133% to 29.6 billion won, marking a significant surge in operating profit from the overseas segment.

In India, expanding production capacity at the new ice cream factory in Pune, Maharashtra, effectively boosted supply during peak season. In the confectionery sector, Lotte Choco Pie continued its robust growth trajectory. In Kazakhstan, increased local sales and expanded exports contributed to performance growth.

Domestically, the company focused on strengthening competitiveness centered on core brands. Initiatives included KBO collaboration marketing featuring Pepero and Xylitol, the second phase of the "Kanchyo Name Marketing" campaign, and World Cone marketing efforts. Additionally, earlier-than-usual heatwaves positively impacted ice cream sales growth.

Management efficiency measures to address rising raw material prices and high exchange rates also contributed to improved profitability. Lotte Wellfood rationalized low-efficiency SKUs and sales channels while continuing to optimize logistics and procurement processes.

Lotte Wellfood anticipates that external uncertainties, including volatility in cocoa bean prices due to abnormal weather and repercussions from the Middle East conflict, will persist into the second half of the year.

In response, the company plans to introduce and expand distribution of local Lotte brands at key overseas subsidiaries in India and Kazakhstan, while expanding market entry into mainstream distribution channels in export markets through K-culture-linked marketing campaigns. Domestically, it will continue improving its business structure through management efficiency and targeting seasonal trends centered on core brands.

A Lotte Wellfood official stated, "Despite challenging external conditions such as geopolitical instability and rising raw material prices, we were able to maintain our performance recovery trend thanks to strong results from key overseas hubs and intensive management efficiency efforts." The official added, "Through expanding market entry into global mainstream channels, targeting trends centered on core brands, and continuously strengthening competitiveness, we will continue pursuing robust growth focused on profitability."

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*This content was translated by AI.