Performance Improvement Strategies Revealed Through CEO IR Letter
First Interim Dividend in the Retail Industry... Dividend Set at 1,200 KRW
On June 5, Sanghyun Kim, Vice Chairman and Head of Lotte Retail Group, delivered a 'CEO IR Letter' to shareholders, outlining Lotte Shopping's performance improvement strategies and strengthened shareholder return initiatives. This marks the first regular letter from Lotte Shopping to its shareholders, signaling an effort to enhance communication with shareholders and investors.
In the IR letter, Vice Chairman Kim stated, "Good management begins with good communication," expressing his commitment to more actively engage with shareholders and investors going forward. Previously, in 2023, Vice Chairman Kim held a 'CEO IR Day' for the first time in 13 years, where he presented mid- to long-term goals and core strategies to shareholders and analysts, and established this as a regular event.
Starting this year, Lotte Shopping plans to strengthen regular communication with shareholders through these letters. The letter delivered on this day included strategies for improving Lotte Shopping's performance, the introduction of an interim dividend?the first shareholder-friendly policy of its kind in the retail industry?and updates on the implementation of the value enhancement plan announced last year.
Lotte Shopping announced that it will enhance its core business competitiveness through several initiatives: accelerating the renewal of key department store locations, completing the Okado Busan CFC (Customer Fulfillment Center) and activating its integration with the Lotte Mart Zeta app, opening the 'Lotte Mart Express' K-grocery specialty store at Singapore's FairPrice, and strengthening overseas business strategies.
Vice Chairman Kim stated, "Through our company-wide strategy 'Transformation 2.0,' we are establishing a foundation for sustainable mid- to long-term growth by securing profitability, expanding globally, and enhancing product competitiveness." He added, "We will continue our efforts not only to improve short-term results but also to secure mid- to long-term competitiveness and increase investment appeal."
The implementation of an interim dividend for shareholder returns was also announced. For the first time since its listing in 2006, and as the first in the retail industry, Lotte Shopping will implement an interim dividend, providing dividend stability and enhancing shareholder value through biannual dividends. This year's interim dividend is set at 1,200 KRW per share, with the record date being June 30.
Lotte Shopping also disclosed the progress of its value-up plan announced in October last year. The company previously announced four shareholder return policies: targeting a shareholder return rate of 35%, setting a minimum annual dividend of 3,500 KRW per share, implementing interim dividends, and improving dividend procedures to enhance dividend predictability.
Despite recording a net loss in 2024 due to asset impairment from asset revaluation, Lotte Shopping paid a dividend of 3,800 KRW per share. In addition, the company has fulfilled all of last year's shareholder return policies, including changing the existing procedure of confirming the dividend amount after the record date at the end of December to a new system where the dividend amount is determined first and the record date is set afterward.
Vice Chairman Sanghyun Kim stated, "Lotte Shopping will continue to respond quickly to market changes and establish itself as a trusted retail company for investors," adding, "We will do our utmost to ensure that Lotte Shopping grows together with its shareholders."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
