'Zero Effect Toktok' Lotte Chilsung Beverage... Operating Profit Up 22.3% Last Year (Comprehensive)

Lotte Chilsung Beverage showed balanced growth in both the beverage and alcoholic beverage sectors, managing to hold its ground in last year's performance. The continuous expansion of the zero-carbonated beverage portfolio and the strong performance of new alcoholic beverage products were key factors.

Lotte Chilsung Beverage 'Tams Zero'./Photo by Lotte Chilsung Beverage

Lotte Chilsung Beverage announced on the 6th that its consolidated operating profit for last year was tentatively estimated at 222.9 billion KRW, a 22.3% increase compared to the same period last year. During the same period, sales rose 13.4% to 2.8417 trillion KRW. Net profit decreased by 4.4% to 131.1 billion KRW. Operating profit in the fourth quarter was 24.4 billion KRW, up 28.7% year-on-year, while sales were 669 billion KRW and net profit turned positive at 5.8 billion KRW.

The beverage sector's cumulative annual sales last year reached 1.8678 trillion KRW, an 11.6% increase compared to the previous year, and operating profit rose 10.6% to 165.9 billion KRW. Fourth-quarter standalone sales last year were 421.7 billion KRW, up 9.8% year-on-year. Operating profit was recorded at 24.2 billion KRW, a 41.4% increase compared to the previous year.

The increase in beverage category sales was driven by carbonated drinks. The "healthy pleasure" craze continued last year, sustaining demand for zero-carbonated beverages, and supported by portfolio expansion, sales increased by 18% year-on-year. Energy drinks such as 'Hot6 The King Zero' also saw increased demand, with sales rising 28% year-on-year. With the rise of single-person households and more consumers seeking healthy water, the bottled water category also saw an 8% increase in sales compared to the previous year.

The alcoholic beverage sector recorded annual sales of 774.5 billion KRW last year, a 15.2% increase from the previous year. Operating profit rose 50.3% to 36.9 billion KRW. Fourth-quarter standalone sales were 199.1 billion KRW, up 13.7% year-on-year, while operating profit decreased by 4.7 billion KRW compared to the previous year. The fourth-quarter sales in the alcoholic beverage sector were led by soju products featuring 'Cheoeumcheoreom Saero' and cheongju products featuring 'Byeolbit Cheongha.' Sales of these products in the fourth quarter increased by 15.9 billion KRW and 6.6 billion KRW respectively compared to the same period last year. However, for Cheoeumcheoreom Saero, operating profit declined year-on-year due to selling and administrative expenses following its launch in the third quarter.

A Lotte Chilsung Beverage official said, "Thanks to the popularity of zero products driven by the spread of the healthy pleasure trend and active portfolio expansion, sales in the beverage sector rose, and sales increased across all alcoholic beverage categories." He added, "We plan to continue building a trend-oriented portfolio and launching new products to strengthen the zero trend."