LOTTE Chilsung Beverage said on the 6th that third-quarter operating profit on a consolidation basis rose 16.6% from a year earlier to 91.8 billion won. Third-quarter revenue increased 1.3% year over year to 1.0792 trillion won. Net profit for the period rose 39.3% to 62 billion won.
In the beverage institutional sector, third-quarter revenue (separate basis) was 538.4 billion won, down 0.1% from the same period a year earlier. Amid sluggish domestic consumption, the burden of materials and supplies costs for items such as fruit and coffee concentrates increased, and the prolonged strong-dollar trend had a large impact. Revenue fell across juice, bottled water, and sports drink categories.
For carbonated drinks, revenue edged up, led by "Chilsung Cider Zero," which fits the healthy pleasure trend. Revenue in the carbonated drinks institutional sector increased 0.3% from a year earlier.
Revenue for energy drinks rose 23.5%. The launch in the third quarter of new products such as "Hot Six The King Iced Peach Zero" had a large effect.
In beverage exports, revenue increased 7.5% thanks to exports of "Milkis," "Let's Be," and "Aloe Juice," which are gaining attention as global K-beverages.
In the liquor institutional sector, third-quarter results this year showed revenue of 193.3 billion won, down 5.3% from a year earlier, while operating profit rose 42.7% to 13.9 billion won. Excluding soju, overall liquor revenue declined. Only soju saw revenue increase, up 2.3% on the back of higher PET soju sales in the home market.
In the global institutional sector, third-quarter results this year showed revenue of 384.2 billion won, up 9.5% from the same period a year earlier, and operating profit rose 44.8% to 20.7 billion won. The Philippines unit (PCPPI) was affected by the Phoenix Project, a management efficiency program, and plant consolidations. Revenue was 247.8 billion won, up 2.3% from a year earlier, and operating profit turned to a profit at 4.6 billion won.
The Pakistan unit posted revenue of 46.6 billion won, up 7.8% year over year, but operating profit fell 30.6% from a year earlier to 4.2 billion won due to rising prices of materials and supplies such as sugar.
A LOTTE Chilsung Beverage official said, "In the beverage institutional sector, to maintain a competitive edge in zero products, we will successively launch 'Pepsi Zero Sugar Mojito flavor' and 'Chilsung Cider Zero Orange,' and expand health-oriented beverages such as 'Hot Six The Pro' and 'Oatmond Protein'."