Lotte Chilsung Beverage (005300) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated sales rose 28.3% year-over-year to 10,650 billion KRW, but operating profit fell 6.6% to 787 billion KRW and net profit dropped 34.4% to 445 billion KRW.

• Beverage segment sales declined 5.1% year-over-year, with operating profit down 15.1%; liquor segment sales grew 1.5% with operating profit up 44.3%.

• Overseas business sales increased 5.1% year-over-year, with notable growth in the Philippines, Pakistan, and Myanmar.

Financial highlights

• 9M 2024 consolidated sales reached 31,012 billion KRW, up 34.5% year-over-year; operating profit was 1,757 billion KRW, down 13.3%.

• Gross margin for Q3 2024 was 35.5%, down from 39.9% in Q3 2023.

• Debt-to-equity ratio improved to 174.1% as of September 30, 2024, from 180.7% a year earlier.

Outlook and guidance

• Targets revenue of 5.5 trillion KRW, ROE of 10–15%, and D/E ratio of 100% or less by 2028.

• Aims for a shareholder return rate of 30% or more on a consolidated basis by 2028.

• Plans to expand no-sugar and functional beverages, strengthen liquor competitiveness, and accelerate overseas growth.