[Edaily Reporter Kim Ji-woo ] #LotteChilsungBeverage’s operating profit for the third quarter of this year fell by approximately 38% year-over-year due to sluggish performance in its beverage and overseas businesses. While the alcoholic beverages business continued to grow, profitability was dragged down by a slump in domestic consumption—particularly in beverages—and rising prices for raw materials and supplies. LotteChilsungBeverage also revised its full-year earnings forecast downward to reflect the deteriorating domestic and international business environment.

LotteChilsungBeverage announced on the 9th that its consolidated revenue for the third quarter of this year was 1.0501 trillion won, a 2.7% decrease compared to the same period last year. Operating profit for the same period fell 37.9% to 57 billion won. Net income decreased 34.6% to 40.5 billion won.

Cumulative revenue through the third quarter of this year totaled 3.1155 trillion won, a 1.3% increase year-over-year, but cumulative operating profit fell 10.4% to 160.6 billion won.

By business segment, the slump in the beverage business was particularly notable. On a standalone basis, third-quarter revenue for the beverage segment was 513.3 billion won, down 4.7% year-over-year, while operating profit plummeted 47.4% to 29 billion won.

Sales declined across all categories—including carbonated beverages, coffee, and sports drinks—due to sluggish domestic consumption and intensifying competition in the beverage market. Additionally, profitability worsened as prices for raw materials and supplies rose due to geopolitical instability in the Middle East. However, overseas demand for key products such as Milkis and Let’s Be increased, leading to a 6.1% year-over-year rise in beverage export sales.

In contrast, the alcoholic beverages business continued its growth trend. On a standalone basis, third-quarter revenue for the alcoholic beverages division reached 198.2 billion won, a 2.5% increase compared to the same period last year. Operating profit rose 24.1% to 17.2 billion won.

In particular, RTD (Ready-to-Drink) products drove these results. Earlier this year, LotteChilsungBeverage rebranded its fruit-flavored carbonated liquor line as “Soonhari Jin” and expanded the product lineup to include yuzu, sangria, and sugar-free green lemon varieties. Driven by this, RTD beverage sales surged 119.6% year-over-year.

Soju sales also rose by 2.2%, driven by the relaunch of “Cheumcheomcheong” and strong sales of “Saero.” Cheongju sales increased by 1.9% due to growth in “Subok One Cup,” a small-sized product.

The overseas business could not escape cost pressures. Third-quarter revenue for the global division—which includes overseas subsidiaries in the Philippines, Pakistan, and Myanmar—totaled 380.6 billion won, a 0.9% decrease compared to the same period last year. Operating profit fell 48.1% to 10.7 billion won. Rising raw material prices and logistics costs, driven by high oil prices and geopolitical instability, led to a deterioration in profitability.

Reflecting the weak performance, LotteChilsungBeverage lowered its full-year revenue forecast for this year from the previous 4.1 trillion won to 4.08 trillion won. The operating profit forecast was also revised downward from 200 billion won to 185 billion won. However, even the revised forecasts represent a 2.7% increase in revenue and a 10.7% increase in operating profit compared to last year’s results.

The company plans to focus on improving profitability. In September, it established an “Innovation Task Force” to strengthen the competitiveness of its domestic business, and in the fourth quarter, it plans to expand sales, focusing on carbonated beverages and zero-sugar product lines. In the alcoholic beverages division, the company aims to sustain the growth momentum of “Sunhari-jin” and focus on cost efficiency at its overseas subsidiaries.

A LotteChilsungBeverage official stated, “Although profitability in the beverage and global businesses declined due to sluggish consumption, rising raw material prices, and increased global logistics costs, the alcoholic beverages division saw improvements in both sales and operating profit, driven by the growth of RTD products,” adding, “We will respond to market changes through cost efficiency and profitability-focused management.”