Lotte Chilsung was strong early on the 11th on a securities firm outlook that overseas subsidiary sales will increase next year.
As of 9:49 a.m. that day, Lotte Chilsung was trading at 137,300 won, up 7,800 won (6.02%) from the previous session.
That day, the securities industry offered a positive outlook that Lotte Chilsung's proportion of overseas sales will increase going forward.
Kang Eun-ji of Korea Investment & Securities projected that next year the Philippine subsidiary (PCPPI) will post sales of 1.1504 trillion won, up 6.4% from a year earlier, and operating profit of 30.1 billion won, up 120%.
This is interpreted as stemming from expectations that efficiency gains will emerge going forward as the Phoenix Project, carried out from Feb. 2024 through Sep. this year, comes to an end. The Phoenix Project is a management efficiency initiative aimed at automation and reducing manufacturing expenses.
Kang said, "The profitability improvement project that began in 2024 will end in the third quarter of 2025, one-off expense outlays such as plant consolidation will be wrapped up, and profitability will improve in earnest," and added, "From a mid- to long-term perspective, expanding overseas bottling business regions could contribute to future top-line growth and a higher proportion of overseas sales."
Kang projected that Lotte Chilsung's 2026 sales will be 4.2339 trillion won, up 5% from a year earlier, and operating profit will be 234.4 billion won, up 25%.