Lotte Chilsung Beverage (005300) investor relations material

Executive summary

• Consolidated Q1 2026 sales rose 4.6% year-over-year to 9,525 billion KRW, with operating profit up 91.0% to 478 billion KRW and net profit up 366.6% to 253 billion KRW.

• Beverage segment contributed 78.2% of sales and 63% of operating profit; liquor segment contributed 21.8% of sales and 37% of operating profit.

• Continued expansion in zero-calorie and health-oriented beverages, and strong performance in soju and beer, including new product launches.

• Overseas subsidiaries, especially in the Philippines, showed robust growth, with PCPPI posting KRW 258.9 billion in Q1 sales.

• Operating margin improved from 2.7% to 5.0% year-over-year.

Financial highlights

• Gross profit increased 9.0% year-over-year, reaching 3,216 billion KRW.

• Profit before income tax surged 219.0% year-over-year to 342 billion KRW.

• Debt to equity ratio improved to 165.1% from 167.7% at year-end 2025.

• Basic EPS for ordinary shares was KRW 2,423, compared to KRW 697 in the prior year.

• Cash and cash equivalents at period end were KRW 135.2 billion.

Outlook and guidance

• 2026 consolidated sales guidance is 41,000 billion KRW (+3.2% YoY), with operating profit targeted at 2,000 billion KRW (+19.6% YoY).

• Focus on expanding new product sales, zero-calorie and functional beverage portfolios, profitability improvement, and scenario-based risk management for geopolitical uncertainties.

• Continued investment in overseas markets, especially in Russia, China, and the US, to drive export growth.

• Ongoing cost management and efficiency initiatives to support profitability.