1. Lotte Chilsung Beverage Q1 2025 Performance: A Mixed Bag

Lotte Chilsung Beverage reported revenue of KRW 10.872 trillion (-2% YoY), operating profit of KRW 62.3 billion (+10% YoY), and net profit of KRW 27.7 billion (-11% YoY) for Q1 2025. While operating profit surpassed market expectations, revenue and net profit showed sluggish performance.

2. Analyzing the Performance Dip: External and Internal Factors

The decline in revenue is attributed to the global economic slowdown and weakened consumer sentiment. Conversely, the increase in operating profit is due to cost reduction efforts and strong sales of high-margin products. The decrease in net profit is a result of the combined effect of declining revenue and increased other expenses.

3. Lotte Chilsung Beverage’s Growth Drivers and Future Strategies: ‘Zero’ and Overseas Markets

  • Capitalizing on the ‘Healthy Pleasure’ Trend: Strengthening the zero-calorie beverage lineup to drive growth.
  • Enhancing Competitiveness in the Alcoholic Beverage Market: Expanding market share with ‘Sae-ro’ soju and ‘Kloud’ beer.
  • Expanding Overseas Presence: Accelerating expansion into overseas markets such as Russia, Europe, and Southeast Asia.
  • Strengthening ESG Management: Enhancing corporate image through eco-friendly policies and RE100 membership.
  • Entering New Businesses: Diversifying the business portfolio through the liquefied carbon dioxide manufacturing business.

4. Action Plan for Investors: Long-Term Perspective, Caution on Short-Term Volatility

Lotte Chilsung Beverage has high long-term growth potential, but investors should be mindful of short-term earnings volatility. It’s crucial to make investment decisions based on continuous monitoring of Q2 earnings, cost management, and overseas market performance.