"Raw Material Price Surge" Lotte Wellfood's Operating Profit Down 11.3% Last Year

Sales Slightly Decrease to 4.0443 Trillion KRW

Lotte Wellfood recorded disappointing results last year due to rising raw material costs and other factors.

Lotte Wellfood announced on the 12th that its consolidated sales last year amounted to 4.0443 trillion KRW, a 0.5% decrease compared to the previous year.

During the same period, operating profit decreased by 11.3% to 157.1 billion KRW, while net profit increased by 21% to 82 billion KRW.

Lotte Wellfood

In the fourth quarter, sales recorded 970.5 billion KRW, down 0.9% year-on-year, and operating loss was 19.6 billion KRW, turning to a deficit. Net loss was recorded at 25 billion KRW.

A Lotte Wellfood official explained, "The slight decrease in sales last year was due to the rationalization of the food material channel and the impact of the economic downturn in the fourth quarter," adding, "Operating profit was affected by one-time costs such as rising raw material prices including Kakao and the ruling on ordinary wages."

He added, "The more than 15% improvement in net profit was due to a reduction in corporate tax expenses and a decrease in impairment from asset evaluations of overseas subsidiaries conducted annually."

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