[Edaily Reporter Kim Ji-woo ] LOTTE WELLFOOD(280360)significantly improved its profitability in the second quarter. Although the company continued to face pressures from raw material costs and a strong exchange rate, growth at its overseas subsidiaries and cost efficiency measures drove the rebound in earnings.

LOTTE WELLFOOD announced on the 7th that its consolidated operating profit for the second quarter of this year reached 64.7 billion won, an 88.5% increase compared to the same period last year. Revenue for the same period rose 8.6% to 1.1558 trillion won. The operating profit margin stood at 5.6%. Net income increased by 130.1% to 36.1 billion won.

Cumulative revenue for the first half of the year reached 2.1831 trillion won, a 7% increase compared to the same period last year. Operating profit rose 98% to 100.5 billion won. The cumulative operating profit margin for the first half stood at 4.6%.

Overseas operations drove this improvement in performance. In the second quarter, revenue from overseas subsidiaries reached 311.2 billion won, a 28% increase year-over-year, while operating profit rose 133% to 29.6 billion won.

In India, supply during the summer peak season expanded as the utilization rate at the new ice cream plant in Pune, Maharashtra, increased. In the dried fruit segment, sales of Lotte Choco Pie continued to grow. Kazakhstan also saw improved performance, driven by increased local sales and exports.

In South Korea, increased ice cream sales driven by an early heatwave contributed to revenue growth. LOTTE WELLFOOD also strengthened promotional activities centered on core brands, including collaborative marketing campaigns with the Korea Baseball Organization (KBO) for Pepero and Xylitol, brand-name marketing for Kancho, and seasonal marketing for World Cone.

LOTTE WELLFOOD also strengthened its core competitiveness. Although the company continued to face rising prices for key raw materials—such as packaging materials and raw milk—and the burden of a strong exchange rate, it improved its cost structure by streamlining low-efficiency product lines (SKUs) and sales channels, as well as optimizing logistics and procurement processes.

LOTTE WELLFOOD anticipates that external uncertainties—such as volatility in cocoa bean prices and political instability in the Middle East—will persist in the second half of the year. To overcome these challenges, the company plans to strengthen its global competitiveness. Major overseas subsidiaries in countries such as India and Kazakhstan intend to continue their growth by expanding the introduction and distribution of the Lotte brand locally. In terms of exports, the company is strengthening marketing tied to K-Culture and accelerating efforts to expand its presence in major distribution channels across various countries.

In the domestic market, the company intends to improve its operational structure through ongoing efficiency initiatives while capitalizing on seasonal trends centered on its core brands.

A LOTTE WELLFOOD official stated, “Despite a challenging external environment marked by geopolitical instability and rising raw material prices, we were able to maintain our recovery trend in second-quarter performance thanks to strong results from our key overseas bases and intensive management efficiency measures.” The official added, “While uncertainty is expected to persist in the second half of the year, we will continue to pursue robust, profitability-focused growth.”