LOTTE (004990) investor relations material

Executive summary

• Consolidated 3Q25 revenue was KRW 4,154 billion, up 0.3% year-over-year, with operating profit rising 3.4% to KRW 185 billion, driven by global F&B growth and improved retail profitability.

• Year-to-date (1-3Q25) revenue declined 1.7% to KRW 11,783 billion, and operating profit fell 16.5% to KRW 345 billion, reflecting ongoing restructuring and cost pressures.

Financial highlights

• F&B division 3Q25 revenue grew 2.6% year-over-year to KRW 2,552 billion, with operating profit up 6.2% to KRW 178 billion, supported by global expansion and domestic efficiency.

• Retail (Korea Seven) 3Q25 revenue dropped 8.4% year-over-year to KRW 1,273 billion, but operating losses narrowed due to store restructuring and improved per-store profitability.

• Other businesses saw improved operating losses, notably from the liquidation of the healthcare business and transfer of the mobile gift certificate business.

• Separate basis 3Q25 revenue and operating profit declined due to lower dividend and brand royalty income.

Outlook and guidance

• Shareholder return policy targets a dividend payout ratio of 35% or more for 2024–2026, with a 2024 dividend per share of KRW 1,200 and a yield of 5.8%.

• Management is focused on new growth themes: bio & wellness, mobility, sustainability, and new life platforms, with significant investment in biologics and digital platforms.