Lotte Chilsung Beverage (005300) Q3 2025 earnings summary

Executive summary

• Consolidated Q3 2025 sales rose 1.3% year-over-year to 10,792 billion KRW, with operating profit up 16.6% to 918 billion KRW and net profit up 39.3% to 620 billion KRW.

• Nine-month consolidated sales slightly declined by 0.8% year-over-year, but operating profit increased 2.0% and net profit rose 16.5%.

• Achieved consolidated revenue of KRW 3,076.8 billion and operating income of KRW 179.2 billion for the nine months ended September 30, 2025, with net income attributable to owners of parent at KRW 91.2 billion.

• Beverage segment contributed 80.3% of revenue and operating income; liquor segment contributed 19.7%.

• Continued expansion in overseas markets, especially through Pepsi-Cola Products Philippines, Inc. (PCPPI), which recorded KRW 805.4 billion in sales.

Financial highlights

• Q3 2025 consolidated operating margin improved to 8.5% from 7.4% a year ago.

• Q3 net margin increased to 5.7% from 4.2% year-over-year.

• Q3 beverage segment sales were flat year-over-year at 5,384 billion KRW, with operating profit up 4.3%.

• Q3 liquor segment sales fell 5.3% year-over-year, but operating profit surged 42.7%.

• Overseas subsidiaries' Q3 sales grew 2.3% year-over-year, with operating profit turning positive.

• Consolidated revenue for the nine months ended September 30, 2025: KRW 3,076.8 billion (down from KRW 3,101.2 billion YoY).

• Operating income: KRW 179.2 billion (up from KRW 175.7 billion YoY).

• Net income attributable to owners of parent: KRW 91.2 billion (up from KRW 80.7 billion YoY).

• Basic EPS: KRW 9,070 (up from KRW 8,025 YoY).

• Cash and cash equivalents at period end: KRW 282.5 billion.

Outlook and guidance

• 2025 full-year consolidated sales are guided to grow 0.1% to 40,300 billion KRW, with operating profit stable at 1,850 billion KRW.

• Beverage and liquor segments are expected to see sales and profit declines, while overseas subsidiaries are projected to deliver double-digit sales and profit growth.

• Strategic focus includes infrastructure optimization, asset liquidation, and expansion of health-conscious beverages and overseas bottling.

• Targeting a 30% shareholder return ratio on a consolidated basis by 2028, shifting from a separate basis dividend payout ratio.

• Plans to enhance shareholder returns through interim dividends, share buybacks, and cancellations.

• Continued focus on expanding zero-calorie and health-oriented product lines and strengthening overseas business.