Lotte Wellfood Q3 OP up 29.7% on strong growth in India, Kazakhstan

Résumé détaillé

Lotte Wellfood Co. saw its third-quarter operating profit surge 29.7 percent from the same period a year ago, driven by strong growth at its overseas subsidiaries. The company…

Lotte Wellfood Co. saw its third-quarter operating profit surge 29.7 percent from the same period a year ago, driven by strong growth at its overseas subsidiaries.

The company posted revenue of 1.17 trillion won ($876.4 million) in the third quarter, up 1.5 percent from a year ago. Its operating profit stood at 89.9 billion won, up 29.7 percent. Its operating margin stood at 7.7 percent.

For the first nine months, revenue rose 5 percent to 3.36 trillion won, while operating profit jumped 58.7 percent to 190.4 billion won. The cumulative operating margin reached 5.7 percent.

Their third-quarter revenue increased 16.1 percent to 271 billion won, while operating profit surged 137.8 percent to 23.1 billion won, accounting for about a quarter of the company’s total operating profit.

For the January-September period, overseas revenue grew 20.5 percent to 852.7 billion won and operating profit more than doubled to 64.7 billion won.

In India, the stabilization of the fourth production line for Lotte Choco Pie and expanded regional market coverage contributed to growth. Lotte Wellfood’s Kazakhstan subsidiary also maintained growth in both domestic sales and exports.

In Korea, revenue decline, but profitability improved as the company streamlined operations with a focus on margins, discontinuing low-efficiency stock-keeping units and sales channels.

While unfavorable weather conditions dampened the ice cream market and higher prices for packaging materials and raw milk increased cost pressures, productivity improvements helped offset some of the impact.

In India, it will focus on stabilizing the fourth Choco Pie production line and expanding quick-commerce distribution for ice cream. In Kazakhstan and Russia, it plans to broaden distribution networks for Lotte-branded products. Its export strategy will combine marketing linked to Korean culture with expanded access to local distribution channels.

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