[Market Focus] Lotte Chilsung Surges Over 6% on Profitability Improvement Expectations

Lotte Chilsung is showing an upward trend of over 6% amid expectations for improved profitability.

As of 9:11 a.m. on December 11, Lotte Chilsung was trading at 137,900 won on the Korea Exchange, up 8,400 won (6.49%) from the previous day.

On this day, Korea Investment & Securities forecasted that profitability improvements at Lotte Chilsung's overseas subsidiaries will accelerate next year. Kang Eunji, a researcher at Korea Investment & Securities, stated, "We expect Lotte Chilsung's overseas subsidiaries to post sales of 1.7026 trillion won in 2025, up 8.9% year-on-year, and operating profit of 95.6 billion won, up 39.0%." She added, "The main driver of operating profit growth is the improved profitability of the Philippine subsidiary (PCPPI). We estimate PCPPI's 2025 sales at 1.1504 trillion won, up 6.4%, and operating profit at 30.1 billion won, up 120.3%." She further explained, "The profitability improvement project that began in 2024 will conclude in the third quarter of this year, with one-off expenses such as factory consolidation coming to an end, and profitability is expected to improve in earnest."

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