Lotte Wellfood disclosed that its first-quarter operating profit on a consolidation basis was tentatively tallied at 35.8 billion won. That was up 118.4% from a year earlier.
According to the Financial Supervisory Service's electronic disclosure system on the 8th, Lotte Wellfood's first-quarter sales on a consolidation basis were 1.0273 trillion won, up 5.4% from a year earlier. The operating margin was 3.5%.
In particular, as key overseas subsidiaries in India and Kazakhstan continued to grow, the company said it improved global business growth and profitability, succeeding in a first-quarter rebound. During the period, Lotte Wellfood's overseas subsidiary sales were 270.5 billion won, up 18% from a year earlier.
Transactions with major export destinations such as the United States and China also expanded. During the same period, exports were 66 billion won, up 8% from a year earlier. According to Lotte Wellfood, the share of overseas sales, combining exports and overseas subsidiary sales, accounts for 32% of the total.
In Korea, responding to slowing consumption, the company focused on a premium strategy and trend marketing, and streamlined low-efficiency product SKUs to drive logistics and purchasing process efficiencies, which led to improved profitability. Lotte Wellfood expanded mega-brand lineups such as Moncher, Pepero, and World Cone with a focus on premium products. It also launched new products reflecting trends, including "Dubai-style chewy rice cake pie."
In particular, Lotte Wellfood said it also expects synergy with idol group Stray Kids, which it re-signed as Pepero's global ambassadors. Since appointing Stray Kids as ambassadors, brand awareness and sales performance have improved in overseas markets, and the global marketing effect is expected to continue in the second quarter following the renewal.
Lotte Wellfood plans to strengthen collaborations with the Korea Baseball Organization (KBO) and summer-season ice cream marketing in Korea, while sustaining growth overseas through efficiency gains from operating its integrated India subsidiary and expanding the Lotte brand in Kazakhstan. This move is seen as a response to external uncertainties such as rising materials and supplies prices and exchange-rate volatility stemming from Middle East–origin geopolitical risks.
A Lotte Wellfood official said, "We will continue to accelerate the global expansion of our core brands and strengthen peak-season marketing to maintain the profitability-enhancement trajectory."