Lotte Chilsung Beverage (005300) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated sales declined 2.8% year-over-year to 910.3 billion KRW, with operating profit down 31.9% and net profit down 66.4%.

• Beverage and liquor segments both saw sales and profit declines, while overseas business posted sales growth but lower operating margins.

Financial highlights

• Consolidated operating profit fell to 25.0 billion KRW, with OPM dropping from 3.9% to 2.7% year-over-year.

• Net profit decreased to 5.4 billion KRW, a 66.4% decline from Q1 2024.

• Gross profit margin decreased from 33.8% to 32.4% year-over-year.

• Current assets rose 12.3% sequentially, while total assets increased 2.7%.

Outlook and guidance

• Full-year 2025 consolidated sales are projected to rise 7.1% to 4.31 trillion KRW, with operating profit up 29.8% to 240.0 billion KRW.

• Beverage and liquor sales expected to grow 2.1% and 2.7% respectively, with overseas sales up 16.5%.

• New product launches and flavor revamps planned for key brands in 2025.