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Lotte Wellfood significantly boosted its profitability in the third quarter of this year, driven by rapid external growth in the global market and structural improvements in its domestic business. Although domestic sales declined slightly due to a sluggish domestic economy, overseas subsidiaries in India and Kazakhstan led earnings growth, pushing overall operating profit up by nearly 30%.
According to Lotte Wellfood on the 11th, consolidated revenue for the third quarter of this year was provisionally recorded at 1.1739 trillion won, with an operating profit of 89.9 billion won. These figures represent increases of 1.5% and 29.7%, respectively, compared to the same period last year. Net income rose by 4% to 51.9 billion won, while the operating profit margin stood at 7.7%.
Cumulative results through the third quarter also showed a clear trend of improvement. Consolidated cumulative revenue increased by 5% year-on-year to 3.3569 trillion won, and cumulative operating profit surged by 58.7% to reach 190.4 billion won.
The overseas business was the primary driver behind this strong performance. Overseas subsidiary revenue in the third quarter rose by 16.1% year-on-year to 271 billion won, while operating profit skyrocketed by 137.8% to 23.1 billion won. On a cumulative basis, overseas revenue increased by 20.5% to 852.7 billion won, and operating profit jumped by 105.4% to 64.7 billion won. The Indian subsidiary supported sales growth as operations of the fourth Choco Pie production line stabilized and its sales regions expanded, while the Kazakhstani subsidiary also contributed through simultaneous increases in local sales and exports.
The domestic business succeeded in strengthening its fundamentals despite a contraction in scale. Domestic revenue in the third quarter fell by 1.7% year-on-year to 918.2 billion won, influenced by factors such as a shrinking ice cream market. However, operating profit actually increased by 10.3% to 69.4 billion won. This result was achieved by streamlining low-profitability products and sales channels and improving production efficiency, even in an environment where price burdens for key raw materials and packaging supplies, such as milk, persisted. A marketing strategy focused on core brands also played a crucial role in defending profitability.
Lotte Wellfood is expected to maintain its growth momentum through a "two-track" strategy of global expansion and strengthening domestic profitability beyond the fourth quarter. In overseas markets, the company will aim to expand ice cream sales through instant delivery services, alongside the stable operation of the fourth Choco Pie production line in India. In Eurasian regions such as Kazakhstan and Russia, it plans to strengthen the sales foundation for Lotte brand products by expanding local distribution networks.
Additionally, the company participated in last month's international food exhibition "SIAL Paris 2026" in France, showcasing Pepero, ice cream products, and its home meal replacement brand "Chef Food." It is also broadening its touchpoints with global consumers by running advertising and social media (SNS) events in key overseas areas, including Times Square in New York, to mark Pepero Day.
Domestically, the company will actively respond to peak season demand, such as Pepero Day in the fourth quarter, while accelerating its push into new sales channels like warehouse-style discount stores and daily necessities shops. Alongside this, it plans to focus on structural improvement and profitability defense by continuously adjusting low-profitability products and distribution routes.
A Lotte Wellfood official stated, "The strengthening of fundamental competitiveness through continuous business structure optimization and the strong performance of overseas subsidiaries in India and Kazakhstan drove third-quarter results." The official added, "Going forward, we will continue to pursue qualitative growth by reinforcing our domestic profitability strategy and expanding our dominance in the global market."
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