Lotte Chilsung Beverage reports lower Q2 profit
Lotte Chilsung Beverage recorded higher second-quarter revenue as exports, ready-to-drink products and liquor sales continued to expand.
SOUTH KOREA – Lotte Chilsung Beverage reported a decline in second-quarter profitability as rising raw material and logistics costs outweighed the benefits of higher sales across its beverage, liquor and export businesses.
The company posted consolidated operating profit of 55.8 billion won (US$39.36M) during the quarter, representing a 10.4% decline compared with the same period last year. Revenue increased by 2.4% to 1.1129 trillion won (US$785.1M).
For the first half of 2026, cumulative revenue reached 2.0654 trillion won (US$1.46B), while operating profit rose by 18.6% to 103.6 billion won (US$73.08M). The company attributed the growth in revenue to expanding overseas operations and strong performances from several of its flagship brands.
Within the beverage division, second-quarter standalone revenue increased by 1.7% to 500.5 billion won. However, operating profit fell by 13.2% to 20.5 billion won (US$14.46M).
Carbonated beverages remained an important growth driver, with revenue rising by 3.1% amid growing demand for zero-calorie products and stronger seasonal sales. Revenue from coffee beverages increased by 4.1%, supported by rising demand for ready-to-drink (RTD) coffee products.
Sports drinks also recorded strong momentum, with revenue climbing by 8.5% as warmer weather boosted consumer demand for hydration products.
Export sales expanded by 9.8%, supported by stronger demand in markets including the United States, Russia, Europe and Southeast Asia. The company said products such as Milkis, Let’s Be and Aloe Juice contributed significantly to this growth.
The liquor business also delivered improved results. Standalone revenue increased by 3.2% to 195.1 billion won, while operating profit surged by 156.6% to 7.5 billion won.
Ready-to-drink alcoholic beverages led the growth, with sales increasing by 143.3% following the launch of new flavours under the Soonhari Jin brand.
Revenue from soju rose by 1.9%, supported by the renewal of the Chum-Churum brand and growing demand for Saero products. Wine sales increased by 8.8%, while sales of Cheongju products rose by 1.8%.
The company’s global division, which includes operations in the Philippines, Pakistan and Myanmar, reported revenue growth of 3.4% to 458.5 billion won. However, operating profit declined by 27% to 26.1 billion won.
A company representative said, “The second quarter this year presented challenges in terms of profitability due to worsening external variables, including high inflation, rising raw material prices and global logistics cost burdens, but we were able to maintain revenue growth.”
The company added that it would continue focusing on global brand development and operational efficiency improvements to strengthen profitability throughout the remainder of the year.
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