[Click eStock] "Lotte Wellfood Expected to Meet Market Expectations for Q2 Earnings"

Korea Investment & Securities analyzed on the 5th that Lotte Wellfood's Q2 performance this year likely met market expectations.

Researcher Eunji Kang of Korea Investment & Securities stated, "We estimate that in Q2, sales reached 1.0791 trillion KRW and operating profit was 64.9 billion KRW," adding, "These figures represent increases of 3.7% and 33.7%, respectively, compared to the same period last year."

She continued, "The confectionery business is growing centered on key products in both dry and ice cream segments," and added, "The food business is expected to see profitability improvement along with normalization of the oil business." Furthermore, she emphasized, "The overseas business division likely saw sales and operating profit increase by 9.5% and 31.3%, respectively," noting, "Performance improved due to price hikes and increased demand for dry and ice cream products."

Researcher Kang analyzed, "Considering that the dry goods segment in India is in the off-season for Choco Pie, sales likely increased due to the effect of the new third production line," and "The ice cream segment probably recorded double-digit sales growth thanks to the warm weather continuing since April." She predicted, "Given the operating rate of the third Choco Pie line, there is a high possibility of additional expansion of the Choco Pie production line," and "The new ice cream factory in Pune is expected to start operations in the second half of this year."