LOTTE (004990) Q1 2025 earnings summary

Executive summary

• Revenue declined by 4.1% year-over-year to 3,585 billion KRW, with operating profit dropping 74.1% to 18 billion KRW and net income turning to a loss of 921 billion KRW.

• Global F&B sales grew, but domestic consumption slowdown and cost pressures reduced profitability.

• Retail segment saw lower sales due to store restructuring, but operating losses narrowed from improved efficiency.

Financial highlights

• Consolidated operating margin fell from 1.9% to 0.5% year-over-year.

• F&B revenue rose 1.3% YoY, but operating profit fell 25.7%.

• Retail revenue dropped 10.9% YoY, with continued operating losses.

• Others segment revenue declined 10.5% YoY, with a larger operating loss.

• Debt ratio increased to 152.6% from 146.3% at year-end.

Outlook and guidance

• Enhancement projects and business restructuring in retail aim for performance turnaround.

• F&B division targets global expansion and product innovation, including new store launches in the US.

• Biologics segment expects growth from new ADC CDMO contracts and ongoing facility construction.