LOTTE Rental reported on the 11th that its operating profit for last year decreased by 6.7% to 284.8 billion won. However, the fourth quarter of last year recorded the highest-ever sales and operating profit.
LOTTE Rental's operating profit last year was 284.8 billion won, down 6.7% from the previous year, while its revenue rose by 1.8% to 2.8 trillion won. Net profit for the same period was recorded at 102.7 billion won, a decrease of 10.9%.
Looking only at the fourth quarter, sales increased by 11.6% to 731.3 billion won, and operating profit surged by 34.7% to 71.6 billion won, marking the largest scale ever. Net profit increased by 878.6% to 22.8 billion won.
A representative of LOTTE Rental noted, "As the temporary profit loss from the shift of the business model from used car sales to rental has concluded, we have entered a period of significant growth starting in the fourth quarter," adding, "The proportion of rental profit in annual operating profit has surpassed 50% for the first time since the company's founding."
In the fourth quarter, revenues and operating profits from the long-term rental business (new and used cars) increased by 7.9% and 118.4%, respectively, compared to the same period last year. Short-term rental revenue increased by 15.5% in the Jeju region, while operating profit rose by 72%. In the used car sales business, revenue and operating profit grew by 31.1% and 7.1%, respectively.
On the day of the earnings announcement, LOTTE Rental confirmed a dividend of 1,200 won per share for 2024. Last year, the company completed a share buyback worth approximately 10 billion won and retired all the shares, achieving a shareholder return ratio exceeding 40% of its annual net profit with the dividend confirmation.