Lotte Chilsung Q3 operating profit climbs 16.6%
Lotte Chilsung posts higher third-quarter profits driven by global “K-drink” exports and growing demand for zero-sugar beverages.
SOUTH KOREA – Lotte Chilsung Beverage has reported a 16.6% year-on-year increase in operating profit for the third quarter of 2025, reaching 91.8 billion won (US$63.41M), driven by strong overseas sales and the growing popularity of health-oriented beverages.
Total sales for the quarter rose 1.3% to 1.792 trillion won (US$1.24B), while net profit surged 39.3% to 62 billion won (US$42.83M) compared to the same period last year.
In the beverage division, sales stood at 538.4 billion won (US$, a slight 0.1% decrease from the previous year, but operating profit increased 4.3% to 55.1 billion won (US$38.06M).
The company attributed the growth in profit to efficient cost management, despite ongoing challenges from high raw material prices and sluggish domestic consumption.
Sales in the juice, bottled water, and sports drink categories declined during the quarter, impacted by higher costs for raw materials such as fruit and coffee concentrates, as well as elevated exchange rates and business expenses.
Soda sales rose marginally by 0.3% year-on-year, supported by the launch of a new marketing campaign under the “Zero Delicious Zero” concept. This campaign centered around zero-sugar products that align with the “Healthy Pleasure” trend gaining traction among health-conscious consumers.
Energy drink sales recorded a significant year-on-year increase of 23.5%, boosted by new product launches including “Hot Six The King” and “Ice Peach Zero.”
The company stated that these innovations catered to rising consumer demand for energy replenishment products, particularly among those engaging in outdoor activities and exercise.
Exports also performed strongly, with beverage exports increasing 7.5% year-on-year. Flagship products such as “Milkis,” “Let’s Bee,” and “Aloe Juice” continued to gain popularity in international markets, reaching over 50 countries including the United States, Russia, Europe, and Southeast Asia.
In the liquor segment, sales fell 5.3% year-on-year to 33.3 billion won, mainly due to reduced alcohol consumption amid health-conscious trends. However, operating profit rose 42.7% to 13.9 billion won, driven by cost efficiency in advertising and promotional activities.
The global division achieved sales of 384.2 billion won, up 9.5% from the previous year, with operating profit soaring 44.8% to 20.7 billion won.
Domestically, liquor sales declined across most categories except soju, as weak consumer sentiment persisted due to the ongoing economic slowdown and high prices.
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