Lotte Holdings Q1 Operating Profit Down 26.6% YoY Due to Increased Labor Costs (Comprehensive)

Operating Profit 78.5 Billion KRW · Sales 3.4485 Trillion KRW
Impact of Increased Labor and Training Expenses

Lotte Holdings recorded an operating profit of 78.5 billion KRW in the first quarter of this year. This figure represents a decrease of more than 26% compared to the same period last year. Operating profit declined due to increased operating expenses such as labor costs and training expenses.

Lotte Holdings announced on the 15th that its consolidated operating profit for the first quarter of this year was 78.5 billion KRW, down 26.6% from 106.9 billion KRW in the same period last year. Sales during the same period increased by 16.1% to 3.4485 trillion KRW from 2.9709 trillion KRW in the previous year.

The decrease in operating profit was largely influenced by increased labor costs. Lotte Holdings increased its workforce from 270 to 300 employees from last year to recently, and due to changes in the bonus payment method, average wages and retirement benefits temporarily rose. As a result, total labor costs increased by 3.4 billion KRW compared to the same period last year. Additionally, training expenses also increased by 900 million KRW compared to the previous year due to the transfer of the Talent Development Center business in January last year and the increase in personnel.

A Lotte Holdings official stated, "Operating profit declined as labor costs, training expenses, and advertising expenses increased." He added, "Going forward, we will implement mid- to long-term strategies such as establishing a group ESG (Environmental, Social, and Governance) data system to maintain a balance between financial and non-financial performance and enhance corporate value."

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