LOTTE Corporation and five major listed affiliates, including LOTTE Wellfood, Lotte Chilsung Beverage, Lotte Shopping, and LOTTE Chemical, held the 'Lotte Group IR Day' on the 27th at the Conrad Hotel in Yeouido.
Lotte announced that about 10 executives in charge of finance, planning, and investor relations from each company attended to introduce the business reorganization process and present future group-level growth strategies.
LOTTE Corporation introduced the group's overall performance and key financial issues from last year, as well as this year's key business strategies. As of the end of last year, Lotte's total assets, both domestic and international, were 183.3 trillion won, and sales reached 80.1 trillion won, recovering to the level of 79.9 trillion won before the COVID-19 pandemic in 2019. The earnings before interest, taxes, depreciation, and amortization (EBITDA) was 6.5 trillion won, a decrease of 1.9 trillion won compared to 2019.
Lotte Shopping and Hotel Lotte conducted asset re-evaluations to reflect the actual value of their assets and reported increases of 8.7 trillion won and 8.3 trillion won, respectively.
Through this asset re-evaluation, a total capital increase of 12.6 trillion won was achieved by both companies, and the debt ratio was reduced from 190% to 129% for Lotte Shopping and from 165% to 115% for Hotel Lotte.
Lotte expects positive effects on its credit rating and the procurement of investment resources through the asset re-evaluation. In this atmosphere, it was explained that the demand forecasts for corporate bond issuances from Hotel Lotte, LOTTE Wellfood, and Lotte Chilsung Beverage are leading to successful outcomes.
This year, Lotte also introduced four major key growth strategies focused on revitalizing its portfolio through the sale of non-core businesses and assets, strengthening core competitiveness by business sector, expanding global operations, and fostering new growth businesses.
Since last December, Lotte has consecutively announced the sale of non-core businesses, including LOTTE Rental, the LOTTE Wellfood Jeungpyeong Plant, and LOTTE Chemical's Pakistan subsidiary, and recently the sale of the Korea Seven ATM business on the 26th, accelerating its restructuring.
Lotte also disclosed the status of global expansion strategies by business sector and four new growth business themes focused on bio and wellness, mobility, sustainability, and the new life platform.