Lotte Chilsung Beverage (005300) investor relations material

Executive summary

• Consolidated sales for Q2 2026 rose 2.4% year-over-year to 11,129 billion KRW, with 1H 2026 sales up 3.4% to 20,654 billion KRW.

• Operating profit for Q2 2026 declined 10.4% year-over-year to 558 billion KRW, but 1H 2026 operating profit increased 18.6% to 1,036 billion KRW.

• Net profit for Q2 2026 was 282 billion KRW, up 1.7% year-over-year; 1H 2026 net profit surged 61.4% to 535 billion KRW.

• Beverage segment contributed 80% of revenue and 71.7% of operating profit; liquor segment accounted for 20% of revenue.

• Maintained robust financial position with total assets of KRW 4,371.3 billion and equity of KRW 1,638.9 billion.

Financial highlights

• Gross profit for Q2 2026 was 3,772 billion KRW, up 2.4% year-over-year, with a gross margin of 33.9%.

• Q2 2026 operating margin was 5.0%, down from 5.7% in Q2 2025.

• Debt to equity ratio as of June 30, 2026, was 166.7%.

• Basic EPS for ordinary shares was KRW 4,972 for H1 2026, compared to KRW 3,166 in H1 2025.

• Gross margin improved to 34.6% from 33.2% year-over-year.

Outlook and guidance

• Full-year 2026 consolidated sales are guided at 41,000 billion KRW, up 3.2% year-over-year.

• Operating profit is projected to reach 2,000 billion KRW, a 19.6% increase year-over-year.

• Targeting a shareholder return rate of 30% on a consolidated basis, with continued focus on dividend stability and capital return.

• Plans to expand zero-calorie and health-oriented product lines and strengthen overseas market presence.

• Action plans include minimizing raw material cost impact and expanding the sales network to mitigate fixed cost burden.