Lotte Chilsung Beverage said it posted an operating profit of 47.8 billion won on a consolidation basis for the first quarter of this year. That was up 91% from a year earlier.
According to the Financial Supervisory Service's DART filing system on the 4th, Lotte Chilsung Beverage's first-quarter revenue was 952.5 billion won, up 4.6% from a year earlier.
In particular, beverage institutional sector standalone revenue was 414.2 billion won, up 1.5% from a year earlier. Operating profit for the same period rose 62% to 21.1 billion won. Energy drink revenue and sports drinks increased 8.7% and 11.5%, respectively, from a year earlier. It appears demand for hydration and energy replenishment increased as exercise and outdoor activities grew.
The alcohol institutional sector's standalone revenue was tallied at 194.2 billion won, up 0.7% from a year earlier. Operating profit for the same period rose 9.6% to 15.6 billion won. Lotte Chilsung Beverage said soju, cheongju and RTD (Ready to Drink) products drove growth. Soju products, centered on the revamped "Saero," saw revenue rise 2.6% from a year earlier, while cheongju products increased 2.7%. Over the same period, the RTD lineup jumped 74.4%.
The global institutional sector, which includes the results of overseas subsidiaries in the Philippines, Pakistan and Myanmar, reported first-quarter revenue of 378.3 billion won, up 11.1% from a year earlier. Operating profit for the same period surged 2,123% to 14.3 billion won. In particular, beverage exports were 34.1 billion won and alcohol exports were 21.5 billion won, expanding the share of global business to about 46% of total revenue.
The Philippine subsidiary PCPPI posted first-quarter revenue of 258.9 billion won, up 1.8% from a year earlier. Operating profit for the same period swung to a surplus at 5.4 billion won.
The financial structure also improved. The liability ratio for the first quarter of this year was 165.1%, down 2.6 percentage points (p) from the fourth quarter of the previous year. Over the same period, the borrowing fund ratio fell 5.8 p to 93.4%.
A Lotte Chilsung Beverage official said, "In the first quarter of this year, efforts to improve profitability by business unit showed in the results, and operating profit improved centered on the beverage institutional sector and the global business," adding, "We will raise corporate value based on profitability-centered management and lay the groundwork for continuous growth."