Lotte Wellfood Reports 35.8 Billion Won Operating Profit in Q1, Up 118% Year-on-Year

Sales Up 5.4% to 1.0273 Trillion Won
Proportion of Overseas Sales Rises 2.8 Percentage Points to 32.3% in One Year

Lotte Wellfood announced on May 8 that its sales for the first quarter of this year reached 1.0273 trillion won, with operating profit at 35.8 billion won, representing increases of 5.4% and 118% respectively compared to the same period last year. The operating margin for the first quarter stood at 3.5%.

Lotte Wellfood explained that despite challenging external conditions such as sluggish domestic consumption and increased costs for key raw materials, the company achieved a rebound in its first-quarter results through strengthening global business competitiveness and ongoing management efficiency initiatives.

The proportion of overseas sales, combining exports and revenue from foreign subsidiaries, increased from 29.5% in the first quarter of last year to 32.3% in the first quarter of this year. Revenue from overseas subsidiaries reached 270.5 billion won, up 18% year-on-year. Lotte Wellfood’s export value for the first quarter was 66 billion won, an increase of 8% compared to the previous year.

Lotte Wellfood particularly highlighted significant performance growth in major global hubs such as India and Kazakhstan. In India, expanded sales channel coverage and strong sales of core products—driven by synergies from subsidiary integration—were key contributors. In Kazakhstan, both local sales and exports increased, resulting in strong performance.

To counteract the slowdown in domestic consumption, Lotte Wellfood focused on cultivating premium brands and trend-based marketing. The company expanded the premium lineup of its mega brands, including MonCher, Pepero, and World Cone, and introduced new products such as ‘Dubai ST Chewy Pie’ that reflect market trends. Lotte Wellfood continued to streamline sales channels and improve logistics and procurement processes, and noted that in the global sector, increased sales volume led to visible reductions in fixed costs.

Lotte Wellfood expects ongoing challenges due to uncertainties such as rising raw material prices and exchange rate volatility stemming from risks related to the war in the Middle East. In response, the company plans to maintain profitability improvements by implementing tailored strategies for each domestic and international market.

In Korea, the company will ramp up marketing collaborations with the KBO professional baseball league and proactively respond to peak ice cream season demand to maximize sales. Overseas, Lotte Wellfood aims to maximize operational efficiency at its integrated India subsidiary and further strengthen global competitiveness by expanding the introduction of Lotte brands in Kazakhstan.

A Lotte Wellfood representative stated, “Although external uncertainties such as the risks associated with the war in the Middle East persist, we have achieved solid growth through enhanced global market competitiveness and efficiency improvements in our domestic business. We will continue to accelerate the global expansion of our core brands and strengthen seasonal marketing efforts to maintain a robust trajectory of profitability improvement.”

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