Lotte Wellfood (280360) investor relations material

Executive summary

• Q2 2026 revenue rose 8.6% YoY to KRW 1,155.7bn; operating profit increased 88.5% to KRW 64.7bn, supported by domestic efficiency improvements and overseas growth.

• H1 revenue grew 7.0% YoY to KRW 2,183.1bn, operating profit rose 98.1% to KRW 100.5bn, and net income reached KRW 52.8bn.

Financial highlights

• Q2 net income was KRW 36.1bn, up 130.1% YoY; profit before income tax was KRW 53.1bn, up 109.9%.

• H1 consolidated gross profit was KRW 623.2bn versus KRW 558.2bn; net income was KRW 52.8bn versus KRW 38.4bn, and parent-attributable net income was KRW 54.6bn versus KRW 41.3bn.

• Q2 consolidated gross profit rose 12.9% YoY to KRW 344.1bn; SG&A increased 3.3% to KRW 279.4bn.

• Separate H1 revenue was KRW 1,630.2bn, operating income KRW 66.1bn and net income KRW 32.7bn.

Outlook and guidance

• FY2026 revenue growth is projected at 4–5% and operating margin at 4–6%; outcomes depend on execution and market conditions.

• 2H priorities include efficiency initiatives, India capacity expansion, and broader export products and channels in Europe and Southeast Asia.

• Strategy includes overseas sales and global mega-brand development, domestic production and logistics reconfiguration, and health-focused, low-sugar, low-calorie, premium dessert and locally tailored products.

• The 2024–2028 average shareholder-return target is 35%, including dividends, treasury-share purchases and eligible share cancellations.