LOTTE (004990) Q3 2025 earnings summary

Executive summary

• Consolidated 3Q25 revenue was KRW 4,154 billion, up 0.3% year-over-year, with operating profit rising 3.4% to KRW 185 billion, driven by global F&B growth and improved retail profitability.

• Year-to-date (1-3Q25) revenue declined 1.7% to KRW 11,783 billion, and operating profit fell 16.5% to KRW 345 billion, reflecting ongoing restructuring and cost pressures.

• Net loss attributable to owners for the period was KRW -283.9 billion, a reversal from net profits in previous years.

Financial highlights

• F&B division 3Q25 revenue grew 2.6% year-over-year to KRW 2,552 billion, with operating profit up 6.2% to KRW 178 billion, supported by global expansion and domestic efficiency.

• Retail (Korea Seven) 3Q25 revenue dropped 8.4% year-over-year to KRW 1,273 billion, but operating losses narrowed due to store restructuring and improved per-store profitability.

• Consolidated sales for the first nine months of 2025 were KRW 11.78 trillion, down from KRW 15.76 trillion in 2023 and KRW 15.16 trillion in 2024.

• Operating income for the same period was KRW 345.2 billion, compared to KRW 493.7 billion in 2023 and KRW 340.5 billion in 2024.

• Total assets as of September 30, 2025, were KRW 23.23 trillion, with total liabilities of KRW 14.16 trillion and total equity of KRW 9.07 trillion.

Segment performance

• Retail (distribution) segment sales were KRW 3.67 trillion, food segment KRW 6.77 trillion, advertising agency KRW 677.5 billion, and computer system segment KRW 162.5 billion for the period.

• Retail segment operating income was KRW -41.5 billion, food segment KRW 355.6 billion, advertising agency KRW 21.6 billion, and computer system segment KRW -5.6 billion.

• Lotte Wellfood saw domestic recovery in confectionery and ice cream, but profit was impacted by one-off expenses and higher input costs.

• Lotte Chilsung improved profit through SG&A efficiency and overseas subsidiary performance, despite weak domestic demand.

• Lotte GRS achieved record quarterly sales and profit, driven by Lotteria brand strength and new airport concessions.