Lotte Wellfood is pursuing a dual-track strategy to enhance domestic profitability while expanding into strategic overseas markets such as India and Kazakhstan. The company aims to continue its recovery, building on a nearly twofold increase in operating profit in the first half of the year through improved production and logistics efficiency and global business expansion.
On September 8, Lotte Wellfood announced that it held a town hall meeting last month to share first-half results and its mid- to long-term growth direction with all employees. During the meeting, the company presented its new goal of becoming a global comprehensive food company that connects the world through delicious enjoyment.
Seong-ho Seo, CEO of Lotte Wellfood, identified strengthening the core competitiveness of domestic operations and sustaining growth in global business as key strategies for long-term growth. The company plans to enhance profitability domestically while continuing to grow its scale internationally.
Domestically, the focus will be on improving overall operational efficiency from production to logistics and procurement. Plans include optimizing the production network, enhancing logistics and procurement processes, and establishing a data-driven management system to respond more quickly to market demands.
Product and marketing strategies will be revamped around core brands. The company aims to operate its product portfolio efficiently, concentrating marketing efforts on key brands to improve its profit structure.
Internationally, Lotte Wellfood plans to expand its business scale in key markets such as India and Kazakhstan. The company will strengthen its local business foundation while boosting sales of global flagship brands like Pepero.
Collaboration between Lotte's food subsidiaries in South Korea and Japan will also be enhanced. The recently launched joint venture in Singapore will connect products and overseas business capabilities of the Korean and Japanese Lotte food companies and expand distribution networks.
For the first half of this year, Lotte Wellfood reported consolidated sales of 2.1831 trillion won, a 7% increase from the same period last year. Operating profit reached 100.5 billion won, up 98%. Sales from overseas subsidiaries also rose by 23% during the same period, contributing to overall performance improvement.
Seo stated, "The improvements made during the first half and the achievements in overseas business have laid the groundwork for solidifying our mid- to long-term growth strategy and goals. We will continue to pursue sustainable growth through strengthening our core competitiveness across the business and actively expanding into global markets."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.