Lotte Chilsung Beverage (005300) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated sales declined 1.1% year-over-year to 10,873 billion KRW, with operating profit up 3.5% to 624 billion KRW and net profit rising 31.6% to 277 billion KRW.

• 1H 2025 consolidated sales fell 1.9% year-over-year to 19,976 billion KRW, operating profit dropped 9.9% to 874 billion KRW, and net profit decreased 10.9% to 332 billion KRW.

• Achieved consolidated revenue of KRW 1,997.6 billion and operating income of KRW 87.4 billion for the half-year ended June 30, 2025.

• Beverage and liquor segments experienced sales declines, while overseas subsidiaries posted strong growth in both sales and operating profit.

• Overseas expansion, especially in the Philippines and Russia, contributed to sales growth.

Financial highlights

• Q2 2025 gross profit margin decreased to 33.9% from 35.5% year-over-year.

• Q2 2025 operating profit margin improved to 5.7% from 5.5% year-over-year.

• Q2 2025 net profit margin increased to 2.6% from 1.9% year-over-year.

• Gross margin for 1H 2025 was 33.2%, down from 34.7% YoY.

• Cash and cash equivalents at period end: KRW 163.8 billion.

Outlook and guidance

• 2H 2025 strategy focuses on sustainable business model, infrastructure optimization, and technology adoption.

• Full-year 2025 consolidated sales guidance is 43,100 billion KRW (+7.1% YoY), with operating profit expected at 2,400 billion KRW (+29.8% YoY), and OPM rising to 5.6%.

• Beverage, liquor, and overseas segments all forecasted to grow in sales and operating profit, with overseas operating profit nearly doubling.

• Focus on expanding zero-calorie and health-oriented beverage lines to capture market trends.

• Targeting a 30% shareholder return rate by 2028, shifting from separate to consolidated basis.