Lotte Chilsung swings to profit as beverage, global units drive earnings

Lotte Chilsung Beverage CI

Lotte Chilsung Beverage reported a sharp rebound in first-quarter earnings, driven by solid performance in its beverage, liquor and overseas businesses despite weak domestic consumption.

The company said Monday that revenue rose 4.6 percent to 952.5 billion won ($647 million), while operating profit surged 91 percent to 47.8 billion won.

In the beverage segment, revenue increased 1.5 percent to 414.2 billion won and operating profit climbed 62 percent to 21.1 billion won, supported by strong sales of energy and sports drinks.

The liquor division posted revenue of 194.2 billion won, up 0.7 percent, with operating profit rising 9.6 percent to 15.6 billion won. The company said soju, refined rice wine and ready-to-drink products drove growth, with RTD sales jumping 74.4 percent from a year earlier.

Exports expanded across more than 50 countries, including the United States, Russia, Europe and Southeast Asia, with overseas sales rising 13.4 percent.

The global segment, which includes subsidiaries in the Philippines, Pakistan and Myanmar, saw revenue grow 11.1 percent to 378.3 billion won. Operating profit soared 2,123 percent to 14.3 billion won, with the global business accounting for about 46 percent of total sales.

Among overseas units, Pepsi Cola Products Philippines Inc. reported revenue of 258.9 billion won, up 1.8 percent, while operating profit turned to a 5.4 billion won profit from an 8.7 billion won loss a year earlier.

The company said it plans to improve profitability through new product launches aligned with consumer trends and by strengthening its global competitiveness.

In the beverage segment, it introduced new zero-sugar products, including flavored variants of its flagship soda and Pepsi, as well as a new energy drink lineup. In the liquor segment, it is expanding low-alcohol offerings and reorganizing its fruit-based sparkling alcohol brand.

The company said efforts to improve profitability across business divisions have translated into stronger earnings, particularly in its beverage and global segments.

It added that it will continue to focus on profitability-driven management to enhance corporate value and build a foundation for sustainable growth.