LOTTE (004990) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for H1 2026 was KRW 15.54 trillion, with operating income of KRW 175.1 billion and net income of KRW 78.8 billion, marking a return to profitability after losses in the previous two years.

• The group operates across retail, chemicals, food, and bio, with 83 consolidated subsidiaries and a diversified business portfolio.

• Major capital market activities included significant bond and hybrid security issuances, with robust liquidity and compliance with all debt covenants.

Financial highlights

• H1 2026 revenue: KRW 15.54 trillion; operating income: KRW 175.1 billion; net income: KRW 78.8 billion.

• Total assets: KRW 23.65 trillion; total equity: KRW 9.89 trillion; total liabilities: KRW 13.76 trillion.

• Debt-to-equity ratio: 139.1% (well below covenant limits).

• Cash and cash equivalents: KRW 1.24 trillion.

• H1 2026 EPS: KRW 330 (basic, common stock).

Outlook and guidance

• Management targets continued revenue growth and margin improvement, with a focus on high-value segments such as specialty chemicals, battery materials, and bio CDMO.

• Ongoing investments in capacity expansion, digital transformation, and ESG initiatives are expected to support long-term competitiveness.