Corporate Logo(source: company.lottechilsung.co.kr)
KB Securities announced on July 4 that Lotte Chilsung (005300), a leading beverage company, is expected to report second-quarter earnings in line with market expectations, with earnings recovery projected to accelerate in the second half of the year. The brokerage raised its target price from 150,000 won to 155,000 won. The stock closed at 130,400 won the previous day, down 1.36% from the prior session.
Analyst Ryu Eun-ae projected Lotte Chilsung’s consolidated operating profit for the second quarter at 59.8 billion won, down 0.7% year-on-year, in line with consensus estimates. While domestic beverage sales are expected to decline due to subdued consumer spending and unfavorable weather conditions, improved performance from overseas subsidiaries—particularly driven by increased sales from its Myanmar operations—is likely to offset some of the domestic weakness.
“In the third quarter, domestic revenue could rebound as government stimulus payments coincide with peak summer seasonality,” Ryu said, adding that during previous rounds of COVID-19 emergency relief payments, a significant portion of spending went to restaurants and supermarkets.
Ryu further noted that the decline in key raw material prices such as sugar since the beginning of the year has helped ease cost pressures, which should also contribute to earnings recovery.
Accordingly, KB Securities raised its full-year operating profit estimate for Lotte Chilsung by 3.7%, from 205 billion won to 213 billion won.
*[KOSPI]Lotte Chilsung(005300), established in 1950, is a comprehensive beverage company that manufactures and sells beverage products such as soda and juice as well as liquor products such as soju and beer. The market capitalization is 1.21 trillion won(as of June 3, 2025, closing price).
Corporate Logo(source: company.lottechilsung.co.kr)
KB Securities announced on July 4 that Lotte Chilsung (005300), a leading beverage company, is expected to report second-quarter earnings in line with market expectations, with earnings recovery projected to accelerate in the second half of the year. The brokerage raised its target price from 150,000 won to 155,000 won. The stock closed at 130,400 won the previous day, down 1.36% from the prior session.
Analyst Ryu Eun-ae projected Lotte Chilsung’s consolidated operating profit for the second quarter at 59.8 billion won, down 0.7% year-on-year, in line with consensus estimates. While domestic beverage sales are expected to decline due to subdued consumer spending and unfavorable weather conditions, improved performance from overseas subsidiaries—particularly driven by increased sales from its Myanmar operations—is likely to offset some of the domestic weakness.
“In the third quarter, domestic revenue could rebound as government stimulus payments coincide with peak summer seasonality,” Ryu said, adding that during previous rounds of COVID-19 emergency relief payments, a significant portion of spending went to restaurants and supermarkets.
Ryu further noted that the decline in key raw material prices such as sugar since the beginning of the year has helped ease cost pressures, which should also contribute to earnings recovery.
Accordingly, KB Securities raised its full-year operating profit estimate for Lotte Chilsung by 3.7%, from 205 billion won to 213 billion won.
*[KOSPI]Lotte Chilsung(005300), established in 1950, is a comprehensive beverage company that manufactures and sells beverage products such as soda and juice as well as liquor products such as soju and beer. The market capitalization is 1.21 trillion won(as of June 3, 2025, closing price).