Mingyeong Ki, CEO of Lotte Confectionery, "Continuing Management Efficiency Efforts... Aiming to Improve Profitability"

[Asia Economy Reporter Lee Seon-ae] On the morning of the 27th, Min Myung-gi, CEO of Lotte Confectionery, stated at the 3rd regular shareholders' meeting held at 10 a.m. in the main auditorium on the 7th floor of the Lotte Confectionery headquarters in Yangpyeong-dong, "We will strive to become a company that responds agilely to the uncertain business environment and meets the expectations of our shareholders."

In this fiscal year, Lotte Confectionery achieved sales of 2.093 trillion KRW, operating profit of 97.3 billion KRW, and net profit of 41.6 billion KRW. The significant increase in sales growth compared to the previous year was due to overseas business sites being transferred from the holding company to the confectionery division. Additionally, the dividend was set at 1,300 KRW per share, the same as the previous year.

In his greeting, CEO Min said, "Last year's business environment was one of the most challenging due to international uncertainties such as the US-China trade dispute, conflicts between Korea and Japan, and deadlocks in inter-Korean and North Korea-US relations, along with market conditions including exchange rate fluctuations, minimum wage increases, and a decline in the frozen bread and total market," adding, "Moreover, recently, many companies have suffered considerable damage to their business activities due to the impact of the novel coronavirus infection (COVID-19)."

He continued, "However, despite these difficulties, Lotte Confectionery introduced new products utilizing key brands such as ABC Choco Cookie and Petit Montshell to provide new value to consumers. We also took new challenges such as launching the character license business using Pepero and Malang Cow for the first time in the confectionery industry, renewing the Natuur brand, and introducing frozen bread," and explained, "Furthermore, as the uncertainty in the business environment continues, we have carried out company-wide cost reduction activities and structural improvement efforts more intensively than ever to minimize adverse effects."

CEO Min emphasized that efforts to improve profitability through structural reforms will continue this year. He stated, "We will devote all our efforts to creating a digital workplace through upgrading work processes and systems, continuously strengthening the competitiveness of existing core brands, and revitalizing global business," adding, "In addition, in line with the recently emphasized eco-friendly trend, we will expand eco-friendly packaging, strive to reduce greenhouse gas emissions, and pursue stricter food safety standards."

Meanwhile, at the shareholders' meeting, the approval of the financial statements including the balance sheet, income statement, and appropriation of retained earnings, partial amendments to the articles of incorporation, appointment of directors, and approval of the limit on directors' remuneration were all approved as proposed.

Regarding the appointment of directors, Lee Kyung-hwon, head of Lotte Central Research Institute, was newly appointed as an inside director, and Lee Dong-gyu and Han Sung-ho were newly appointed as outside directors.

This content was produced with the assistance of AI translation services.