Lotte Chilsung Beverage (005300) Q3 2026 earnings summary

Executive summary

• Q3 consolidated sales were KRW 1,050.104bn, down 2.7% YoY; operating profit fell 37.9% to KRW 56.994bn and net profit fell 34.6% to KRW 40.544bn.

• 9M sales rose 1.3% YoY to KRW 3,115.531bn, while operating profit declined 10.4% to KRW 160.640bn and net profit fell 1.1% to KRW 94.064bn.

Financial highlights

• Q3 consolidated gross profit was KRW 356.0bn, down 7.5% YoY; gross margin contracted to 33.9% from 35.7%.

• Q3 profit before tax fell 34.7% YoY to KRW 52.2bn; net profit margin was 3.9% versus 5.7%.

• 9M gross profit was ₩1,054,800m and SG&A ₩892,690m, versus ₩1,048,452m and ₩868,425m in the prior-year period; 9M profit before tax was ₩123,534m versus ₩127,688m.

• 9M parent-attributable net income was ₩90,088m; Q3 basic EPS was ₩3,988 and 9M basic EPS ₩8,960.

Outlook and guidance

• FY2026 consolidated sales forecast is KRW 4,080bn, up 2.7%; operating profit KRW 185bn, up 10.7%, with OPM of 4.5%, up 0.3 percentage points.

• Q4 sales are forecast to rise 7.8% YoY to KRW 964.5bn; operating profit is expected to return to profitability at KRW 24.4bn from a KRW 12.0bn loss.

• FY2026 segment forecasts: Beverage sales KRW 1,820bn and OP KRW 80bn; Liquor KRW 780bn and KRW 41bn; overseas subsidiaries KRW 1,626.1bn and KRW 63.1bn.

• Product development priorities include zero-sugar and zero-calorie drinks, functional and protein beverages, and diversified low-alcohol and RTD offerings.

• Overseas growth plans emphasize channel and market expansion, including Milkis and Let's Be beverage exports and liquor exports led by soju.