LOTTE (004990) Q1 2025 earnings summary

Executive summary

• Revenue declined by 4.1% year-over-year to KRW 3.59 trillion, with operating profit dropping 74.1% to KRW 17.95 billion and net income turning to a loss of KRW 91.87 billion, reflecting a significant decline in profitability.

• The group’s main business segments include retail, chemicals, food, and beverages, with diversified global operations.

• Global F&B sales grew, but domestic consumption slowdown and cost pressures reduced profitability.

• The company maintains a strong liquidity position, with cash and cash equivalents at KRW 1.24 trillion as of March 31, 2025.

Financial highlights

• Consolidated operating margin fell from 1.9% to 0.5% year-over-year.

• Q1 2025 consolidated sales: KRW 3.59 trillion (down from KRW 3.74 trillion in Q1 2024).

• Operating income: KRW 17.95 billion (Q1 2024: KRW 69.34 billion).

• Net loss attributable to owners: KRW 109.74 billion (Q1 2024: loss of KRW 43.88 billion).

• Debt ratio increased to 152.6% from 146.3% at year-end.

Outlook and guidance

• Enhancement projects and business restructuring in retail aim for performance turnaround.

• F&B division targets global expansion and product innovation, including new store launches in the US.

• Ongoing investments in hydrogen, battery materials, and recycling are expected to support future growth.

• The company aims to maintain a stable dividend policy and enhance shareholder returns through buybacks and capital management.