[Click eStock] "Lotte Chilsung, Strong Performance Expected in Q2 as Well"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment positively evaluated the earnings outlook for Lotte Chilsung on the 9th, expecting strong performance in the second quarter as well.

Sim Eunju, a researcher at Hana Financial Investment, stated, "Strong performance is expected in the second quarter. The period from April to May is a time of strong performance across all business divisions, and cumulative beverage and liquor sales from April to May are understood to have grown by double digits compared to the same period last year." She explained that, along with the base effect from the previous year, a sharp recovery in convenience store traffic is expected to drive strong performance in the beverage sector. Top-line growth is also evident, and the margin rate is estimated to improve by 1.1 percentage points.

Despite overall weak demand in the liquor sector, growth is expected to continue due to strong sales of the new product Cloud Draft, the full-scale start of beer OEM, and steady wine demand. On a consolidated basis for the second quarter, sales and operating profit are estimated to increase by 8.2% and 66% year-on-year to 646.8 billion KRW and 48.6 billion KRW, respectively.

Researcher Sim said, "The improvement in liquor sector performance is expected to accelerate, with OEM production of GomPyo wheat beer and Jeju Ale fully underway since April, and it is judged that production of the carbonated drink Trevi will also begin at the beer factory within the first half of the year."

She analyzed that short-term and mid-to-long-term earnings momentum will be highlighted. Researcher Sim stated, "Since the beginning of the year, Lotte Chilsung's stock price has risen by 47%, and the second quarter earnings are expected to meet the increased market expectations, reflecting not only significant short-term profit improvement but also renewed investor confidence in mid-to-long-term financial strength, which is expected to be reflected again in the stock price."

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