Mingyeong Ki, CEO of Lotte Confectionery, "Fostering Mega Brands and Advancing ESG Management"

Lotte Confectionery Holds 4th Regular General Meeting of Shareholders

[Asia Economy Reporter Lim Hye-seon] Min Myung-gi, CEO of Lotte Confectionery, announced on the 23rd that he will "actively respond to the uncertain business environment." He emphasized fostering mega brands, focusing on the recovery of overseas subsidiaries' performance, and accelerating digital transformation (DT) to improve management efficiency. Additionally, he plans to enhance ESG (Environmental, Social, and Governance) management to increase the family business value.

Lotte Confectionery held its 4th regular general shareholders' meeting at 10 a.m. on the same day in the large auditorium on the 7th floor of the Lotte Confectionery headquarters in Yangpyeong-dong. This year, to prevent the spread of COVID-19 and avoid gatherings of many people, shareholders' opinions on the agenda were collected in advance through electronic voting from the 13th to the 22nd of this month.

The event was held amid social distancing measures due to COVID-19, with shareholders holding 88.8% of the total issued shares with voting rights (6,416,717 shares) attending (including proxies and electronic votes).

In his greeting, CEO Min Myung-gi reflected, "Last year, we faced unavoidable difficulties due to the spread of COVID-19," but added, "Lotte Confectionery improved its business performance through profitability-focused management and various challenges despite these difficulties." He further explained, "We actively responded to the shift toward an online-centered distribution environment by launching our own mall ‘Lotte Sweet Mall,’ a snack subscription service ‘Monthly Snack,’ and e-commerce exclusive products ‘Snack Vending Machine,’ boosting online sales." He also added, "Through company-wide cost reduction, we improved our management structure to cope with crisis situations."

In this fiscal year, Lotte Confectionery achieved sales of 2.076 trillion KRW, operating profit of 112.6 billion KRW, and net profit of 41.7 billion KRW. The dividend was set at 1,600 KRW per share, a 23% increase from the previous year.

Meanwhile, at the shareholders' meeting, the approval of the financial statements including the balance sheet, income statement, and appropriation of retained earnings, partial amendments to the articles of incorporation, election of directors, appointment of outside director Son Moon-gi as an audit committee member, appointment of audit committee members, approval of the director remuneration limit, and revision of executive retirement pay guidelines were all approved as proposed.

Lee Young-gu, head of Lotte Group’s Food BU, was newly appointed as an inside director. Outside directors Kim Jong-jun and Na Geon were reappointed, and Son Moon-gi was newly appointed.