Lotte Wellfood (280360) Q1 2026 earnings summary

Executive summary

• Q1’26 consolidated revenue rose 5.4% YoY to KRW 1,027.3bn; operating profit more than doubled to KRW 35.8bn as profitability initiatives offset cost pressure.

• Consolidated net income fell to KRW 16.7bn from KRW 22.7bn; net income attributable to owners was KRW 17.3bn versus KRW 23.7bn.

Financial highlights

• Revenue increased KRW 52.2bn YoY; gross profit rose 10.2% to KRW 279.1bn, while SG&A increased 2.7% to KRW 243.3bn.

• Operating profit was KRW 35.8bn versus KRW 16.4bn; Q1 ERP-related efficiency expenses are expected to be reflected in Q2.

• Profit before tax declined to KRW 24.0bn from KRW 31.2bn; basic and diluted EPS were KRW 1,953, down from KRW 2,677.

• Q1’25 included KRW 11.1bn in Russia-subsidiary FX translation gains, KRW 27.1bn in PET non-compete agreement income, and a KRW 24.9bn JV impairment loss, affecting comparisons.

Outlook and guidance

• FY26 guidance targets 4–5% revenue growth and a 4–6% operating margin; Q1 was described as the start of earnings improvement and a foundation for full-year targets.

• Priorities include high-value products, cost and logistics optimization, workforce efficiency, expanded high-margin ice cream, and growth in key overseas markets.

• Guidance assumes gradual demand recovery and planned capacity and brand execution; results depend on recovery pace, input costs, FX rates, and execution progress.