Lotte Group's ongoing business restructuring and focus on profitability have led to improved performance in the first half of the year. Not only did the retail and food sectors see gains, but even the chemical and construction divisions, which had faced challenging market conditions, reported increased operating profits, indicating a significant transformation across the group.
According to Lotte, Lotte Shopping recorded an operating profit of 342.8 billion won in the first half of the year, an 81.5% increase compared to the same period last year. This growth is attributed to enhanced competitiveness at key stores and the restructuring of underperforming locations, along with improved profitability at major subsidiaries.
In the department store sector, marketing strategies such as the 'townization' approach centered around the main store and Jamsil branch, as well as foreigner-exclusive memberships, have yielded positive results. Foreign sales reached 640 billion won in the first half, and if this trend continues, the company anticipates surpassing 1 trillion won in foreign sales by the third quarter. Internationally, Lotte Mall Westlake Hanoi has achieved record operating profits for six consecutive quarters.
In the second half, Lotte plans to implement its 'Next Townization' strategy, developing the Incheon location as the third Lotte Town. The company aims to accelerate its efforts in the northeastern region of Seoul, leveraging the recently renovated Nowon store and the new Cheongnyangni branch set to open later this year.
The food division has also improved profitability through global expansion and solid management. Lotte Wellfood's operating profit reached 100.5 billion won, a 98.1% increase from the previous year. Global sales grew by 22.8%, driven by significant growth in key overseas subsidiaries in India and Kazakhstan.
Lotte Chilsung Beverage has revamped its product portfolio to align with changing consumer trends. After restructuring its ready-to-drink (RTD) brand 'Soonhari Jin,' the company expanded its product range, resulting in a more than twofold increase in related sales. The company now sells K-beverages like Milkis and Letsbe in over 50 countries, with global sales accounting for approximately 47% of total revenue.
The chemical division is focusing on restructuring its business around specialty (high-value) products. Lotte Chemical maintained a profitable trend in both the first and second quarters, supported by its advanced materials business. The Daesan plant, which completed its split process in June, is set to launch a consolidated entity next month.
Lotte Precision Chemical also saw improved profitability due to increased sales of high-value products. The operating profit for the second quarter surged more than sixfold compared to the previous year, driven by increased sales of cellulose for food and pharmaceuticals and TMAC, a key raw material for semiconductor photoresists. The company plans to expand TMAC production capacity by an additional 16% by the second quarter of 2028.
Lotte Construction reported an operating profit of 172.8 billion won in the first half, more than quadrupling from the previous year. Hotel Lotte also recorded an operating profit of 135.6 billion won, returning to profitability. Lotte Innovate increased its profits by expanding its design, build, and operate (DBO) business and responding to growing demand for AI transformation within the group.
A Lotte Group official stated, "We will strengthen our focus on profitability and establish a sustainable growth foundation centered on global business and specialty areas."
* This article has been translated by AI.
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