Lotte Chilsung Q1 sales hit US$680.7M as profit surges 91%
Global operations contribute nearly half of total sales
SOUTH KOREA – Lotte Chilsung Beverage reported consolidated first-quarter sales of 952.5 billion won (US$680.7 million), up 4.6%, while operating profit climbed 91% to 47.8 billion won (US$34.2 million) as improved performance across key divisions supported earnings growth.
Overseas operations accounted for about 46% of total revenue, reflecting a growing contribution from international markets as the company balanced domestic weakness with stronger performance from export-driven and overseas subsidiaries.
Beverage segment
In the beverage division, first-quarter sales totalled 414.2 billion won (US$296.5 million), up 1.5%, while operating profit increased 62% to 21.1 billion won (US$15.1 million) on improved efficiency and product mix.
Growth was recorded across categories such as carbonated drinks, juice, coffee, energy drinks, sparkling water and sports drinks, with energy drinks up 8.7% and sports drinks up 11.5%, while exports rose 13.4% across markets including the US, Russia, Europe and Southeast Asia.
Liquor segment
The liquor business posted sales of 194.2 billion won (US$138.9 million), up 0.7%, and operating profit of 15.6 billion won (US$11.2 million), an increase of 9.6% despite weaker consumer sentiment.
Soju sales increased 2.6% led by Saero, refined rice wine rose 2.7% supported by Subok One Cup, and RTD products surged 74.4% as fruit sparkling alcoholic beverages gained traction, alongside portfolio updates under Soonhari Jin.
Global segment
Global operations, covering subsidiaries in the Philippines, Pakistan and Myanmar, generated sales of 378.3 billion won (US$270.7 million), up 11.1%, while operating profit jumped 2,123% to 14.3 billion won (US$10.2 million).
Among subsidiaries, PCPPI in the Philippines recorded sales of 258.9 billion won (US$185.2 million), up 1.8%, and swung to profitability with operating profit improving from a loss of 3.3 billion won (US$2.4 million) to a gain of 5.4 billion won (US$3.9 million).
The company said it plans to focus on improving profitability at overseas units and expanding capacity in emerging markets to support brands such as Milkis, Let’s Be, Saero and Soonhari.
An official said earnings improvements in the first quarter were driven by efficiency efforts across divisions, particularly beverages and global business, and added that future strategy will prioritise profitability and long-term growth.
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