Lotte Chilsung Q2 net up 31.8 pct on strong demand for zero-calorie drinks

SEOUL, Aug. 1 (Yonhap) — Lotte Chilsung Beverage Co. said Monday its second-quarter net profit increased 31.8 percent from a year earlier backed by a growing demand for calorie-free drinks and a sharp recovery in alcoholic beverages.

The company logged a net profit of 41.5 billion won (US$31.8 million) in the April-June period, compared with 31.5 billion won in the same period of last year, the country’s leading beverage maker said in a regulatory filing.

Operating profit for the April-June period was 63.8 billion won, up 39.9 percent from the same period the previous year.

The company posted 762.2 billion won in sales, up 13.9 percent from the previous year.

“Lotte Chilsung saw both quantitative and qualitative growth in the second quarter, largely from a sales increase in our calorie-free carbonated drinks. Albeit a small market size, the sharp growth in our spirits category also contributed to our second quarter net profit,” a Lotte Chilsung spokesperson said.

The company said its zero-calorie carbonated beverages and energy drinks expanded at double-digit rates, on the back of growing demand for such products among health-conscious consumers.

Its spirits and alcoholic beverage unit shifted to a profit this year, posting 9.6 billion won of operating profits, as clubs and nighttime entertainment facilities reopened from the government’s easing of social distancing rules.

Wine and whisky saw the sharpest growth in sales and shot up on-year by 69.1 percent and 30.9 percent, respectively.

“Lotte Chilsung will increase its product portfolio of zero-calorie carbonated beverages in the remaining half this year, while growing our health functional beverage business to cater to diversifying needs from consumers,” it said.

Lotte Chilsung is the beverage arm of Lotte Group, the country’s fifth-largest conglomerate by assets, whose business runs from retail to chemicals.

Source: Yonhap News Agency

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