Lotte Wellfood (280360) Q4 2025 earnings summary

Executive summary

• FY25 consolidated revenue rose 4.2% to KRW 4.216T, while operating profit fell 30.3% to KRW 109.5B and net income declined 12.9% to KRW 71.4B.

• Q4 revenue increased 5.1% to KRW 1.020T; operating loss narrowed to KRW 10.5B from KRW 19.6B, while net loss narrowed to KRW 17.0B from KRW 25.0B.

Financial highlights

• FY25 gross profit was KRW 1.143T, down 4.4%; SG&A declined 0.4% to KRW 1.034T.

• Q4 gross profit fell 4.2% YoY to KRW 244.3B; SG&A decreased 7.2% to KRW 254.8B.

• Raw material cost burden totaled KRW 164.1B for FY25 and KRW 38.3B in Q4.

Outlook and guidance

• FY26 revenue growth is projected at 4–5% and operating margin at 4–6%; actual results depend on demand recovery, execution, raw material prices and exchange rates.

• FY26 priorities include margin normalization, premium portfolio restructuring, personnel and organizational rationalization, and more efficient purchasing and raw material sourcing.

• India plans a fourth Choco Pie production line in July 2026; initiatives also include expanding southern India ice cream coverage and LOTTE brand sales in Russia and Kazakhstan.