Lotte Wellfood posted strong second-quarter earnings despite persistent pressure from raw material costs.
The food company disclosed Friday that its consolidated second-quarter sales reached 1.16 trillion won ($815 million), up 8.6 percent from a year earlier. Operating profit climbed 89 percent year-on-year to 64.7 billion won.
Overseas subsidiaries were a standout, with sales rising 28 percent to 311.2 billion won and operating profit surging 133 percent to 29.6 billion won compared with the same period last year.
Growth at key global hubs drove the strong results. In India, the company expanded peak-season supply by ramping up capacity at its new ice cream factory in Pune, Maharashtra. Steady growth in Lotte Choco Pie sales also contributed to the bottom line. In Kazakhstan, the company recorded gains through higher local sales and expanded exports.
In the domestic market, Lotte Wellfood strengthened its competitiveness through marketing campaigns centered on core brands. Initiatives included a Korea Baseball Organization collaboration for Pepero and Xylitol, a second round of name-personalization marketing for Kancho, and a first-half campaign for World Cone.
"Uncertainty is expected to persist in the second half, but we will continue to pursue profitability-focused, steady growth by expanding our presence in global mainstream channels, targeting trends around our core brands, and strengthening our fundamental competitiveness," a company official said.
siuu@heraldcorp.com
