Strong Overseas Performance Drives Lotte Chilsung Beverage's 16.6% Increase in Q3 Operating Profit

Sales Reach 1.0792 Trillion Won, Operating Profit at 91.8 Billion Won
Global Division Operating Profit Up 44.8%
Beverage and Alcohol Exports Also Rise

Lotte Chilsung Beverage reported improved performance in the third quarter of this year, driven by strong overseas business results.

On November 6, Lotte Chilsung Beverage announced that its consolidated operating profit for the third quarter of this year reached 9.18 billion won, a 16.6% increase compared to the same period last year. During the same period, sales rose 1.3% year-on-year to 1.0792 trillion won, while net profit climbed 39.3% to 62 billion won.

Lotte Chilsung Beverage CI. Lotte Chilsung Beverage

By business segment, the beverage division posted third-quarter sales of 538.4 billion won, a 0.1% decrease from a year earlier, while operating profit grew 4.3% to 55.1 billion won. The company explained that amid ongoing sluggish domestic consumption, rising raw material costs for fruit and coffee concentrates, persistent high exchange rates, and increased business expenses led to a decline in sales for juice, bottled water, and sports drink categories.

However, carbonated beverages saw a slight 0.3% year-on-year increase in sales, led by 'Chilsung Cider Zero' and new marketing initiatives focused on the 'Zero That Tastes Good' concept, which aligns with the healthy pleasure trend. Energy drinks also recorded a 23.5% increase in sales in the third quarter, bolstered by the launch of new products such as 'Hot Six The King Ice Peach Zero' and an expanded product lineup.

As for beverage exports, strong sales of products like 'Milkis,' 'Let's Be,' and 'Aloe Juice' led to a 7.5% increase in revenue, with exports reaching over 50 countries including the United States, Russia, Europe, and Southeast Asia.

In the alcoholic beverage segment, third-quarter sales declined 5.3% year-on-year to 193.3 billion won, while operating profit surged 42.7% to 13.9 billion won. The company attributed the drop in sales across all domestic alcoholic beverage categories except soju to continued economic slowdown and high inflation since the first half of the year, which have dampened consumer sentiment.

However, alcoholic beverage exports rose 3.6% year-on-year, driven by growing global interest in K-food alongside K-content, with fruit soju 'Soonhari' and original soju products performing well in the United States, Europe, and Southeast Asia.

In the global division, third-quarter sales reached 384.2 billion won, a 9.5% increase from a year earlier, while operating profit jumped 44.8% (up 6.4 billion won) to 20.7 billion won. The Philippine subsidiary (PCPPI) recorded a 2.3% rise in sales to 247.8 billion won and turned to a profit with 4.6 billion won in operating profit, thanks to the Phoenix Project for management efficiency and plant consolidation. The Pakistan subsidiary saw sales grow 7.8% to 46.6 billion won, but operating profit fell 30.6% to 4.2 billion won due to rising raw material costs such as sugar. The Myanmar subsidiary posted a 47.3% increase in sales to 27.3 billion won, driven by strong market performance of core products such as 'Pepsi' and the energy drink 'Sting.'

A Lotte Chilsung Beverage representative stated, "We plan to actively respond to the continuously growing global demand for K-food, enhance brand awareness and competitiveness in advanced markets such as Europe and the United States by targeting local markets, and improve accessibility for global consumers." The representative added, "We are also continuously considering expanding our bottling business to secure future global growth drivers."

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