Lotte Duty Free Reports Operating Loss of 139.5 Billion KRW Last Year Due to China Lockdown Impact

Expansion of Downtown Duty-Free Store Infrastructure

Lotte Duty Free announced on the 31st in the Hotel Lotte business report that its operating loss last year was 139.5 billion KRW, an increase of 28.8 billion KRW compared to the previous year.

Last year's sales amounted to 5.0301 trillion KRW, a 35.3% increase from the previous year (3.7184 trillion KRW). Fourth-quarter sales were 1.3023 trillion KRW, with an operating loss of 86.1 billion KRW.

Lotte Duty Free CI.
Photo by Lotte Duty Free

Lotte Duty Free explained that the prolonged lockdown in China and the weak dollar at the end of the year caused a decline in the value of inventory assets, contributing to the deficit. Additionally, the estimated reduction in bonded sales license fees was not reflected last year, affecting the performance.

With the recovery of overseas travel demand, Lotte Duty Free plans to attract independent travelers and group tourists in the first half of the year to reduce the proportion of peddlers. Furthermore, it intends to expand downtown duty-free infrastructure and strengthen online promotions.

Meanwhile, due to the global reopening of economic activities, overseas stores such as Singapore Changi Airport, Vietnam, and Australia saw sales increase by approximately 340% compared to the previous year.