Lotte Chilsung Beverage (005300) investor relations material

Executive summary

• Consolidated Q4 2025 sales declined 3.1% year-over-year to 8,943 billion KRW, with operating profit dropping to -120 billion KRW from 92 billion KRW, reflecting a challenging quarter.

• Full-year 2025 consolidated sales decreased 1.3% to 39,711 billion KRW, and operating profit fell 9.6% to 1,672 billion KRW.

• Net profit for Q4 2025 was -439 billion KRW, a significant decline from -217 billion KRW in Q4 2024.

Financial highlights

• Q4 2025 consolidated operating margin dropped to -1.3% from 1.0% in Q4 2024; full-year margin fell to 4.2% from 4.6%.

• Beverage segment Q4 sales fell 6.4% year-over-year, with operating profit at -179 billion KRW, down from -80 billion KRW.

• Liquor segment Q4 sales declined 7.7% year-over-year, with operating profit at -28 billion KRW, down from 91 billion KRW.

• Overseas business Q4 sales grew 3.5% year-over-year, with operating profit up to 102 billion KRW from 95 billion KRW.

• Full-year overseas sales rose 4.6% to 10,765 billion KRW, with operating profit up 41.9% to 474 billion KRW.

Outlook and guidance

• 2026 consolidated sales are projected to rise 3.2% to 41,000 billion KRW, with operating profit expected to increase 19.6% to 2,000 billion KRW.

• Beverage segment sales are forecast to grow 3.1%, liquor by 2.3%, and overseas by 4.4% in 2026.

• Operating profit margins are expected to improve across all segments in 2026.