LOTTE (004990) Q3 2024 earnings summary

Executive summary

• Achieved record-high quarterly revenue of KRW 4,143 billion in 3Q 2024, up 3.5% year-over-year, but operating profit declined 25.9% to KRW 179 billion due to weaker subsidiary performance and higher raw material costs.

• Net profit turned negative at KRW -222 billion, compared to KRW 149 billion in 3Q 2023, mainly due to equity method losses and decreased profitability in key segments.

Financial highlights

• Consolidated revenue rose 3.5% year-over-year to KRW 4,143 billion; operating profit fell 25.9% to KRW 179 billion.

• Net profit swung to a loss of KRW -222 billion from a profit of KRW 149 billion in the prior year quarter.

• Year-to-date (1-3Q) revenue increased 5.9% to KRW 11,989 billion, but operating profit dropped 13.7% to KRW 414 billion; net profit turned negative at KRW -1,872 billion.

• Debt ratio improved to 134.6% from 139.4% year-over-year.

Outlook and guidance

• Focus on new growth themes: Bio & Wellness, Mobility, Sustainability, and New Life Platform.

• Major investments planned in biologics, including USD 3 billion for Songdo Bio Campus by 2030 and $80 million for North American ADC facility.