LOTTE Chilsung Beverage reported that it recorded a consolidated revenue of 910.3 billion won and an operating profit of 25 billion won in the first quarter of this year, as disclosed on the 7th. This represents a decrease of 2.8% and 31.9%, respectively, compared to the same period last year.
All institutional sectors in beverages and alcohol recorded poor performance. The beverage sector saw revenue of 408.2 billion won and operating profit of 13 billion won, down 5.4% and 45.6%, respectively, from the same period last year. Major categories including carbonated drinks, bottled water, juice, coffee, and sports drinks all struggled. Only energy drinks grew by 11.3% due to increased demand for exercise and activity.
Revenue from the alcohol sector decreased 10.2% to 192.9 billion won compared to the previous year. Due to cost savings, operating profit increased by 12% to 14.2 billion won. Sales of 'Sunhari' performed well in the U.S. and European markets.
Meanwhile, the global sector's revenue increased 9.4% to 340.5 billion won compared to the same period last year, but operating profit decreased by 74.2% to 600 million won. The Philippine subsidiary PCPPI saw revenue grow 5.4% to 254.2 billion won, but recorded an operating loss of 3.3 billion won due to expense burdens.
A representative from LOTTE Chilsung Beverage noted, "Despite difficult conditions such as domestic and foreign economic slowdown and cost burdens, we will strengthen our revenue base focusing on high-growth non-alcoholic and zero products and strategic overseas markets."