Seoul: Lotte Chilsung Beverage Co. announced a significant increase in its second-quarter net profit, with a rise of nearly 32 percent compared to the same period last year, largely due to enhanced exports of its key products. Net profit for the April to June period reached 27.7 billion won (US$20 million), marking a 31.6 percent growth from the previous year, as stated in the company's regulatory filing.

According to Yonhap News Agency, the company's operating profit for the second quarter experienced a 3.5 percent year-on-year increase, totaling 62.4 billion won, despite a 1.1 percent decline in sales, which amounted to 1.08 trillion won. However, these earnings did not meet market expectations, as analysts had projected a net profit average of 31.5 billion won, based on a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.

In more detail, the non-alcoholic beverage division reported a 33.2 percent decrease in operating profit, which amounted to 23.7 billion won. This decline was attributed to rising raw material costs, particularly for orange and coffee. Additionally, sales of products such as soda, coffee, mineral water, and sports drinks suffered due to a prolonged slump in domestic consumption. Despite these challenges, there was a 4.8 percent rise in energy drink sales, as Lotte Chilsung Beverage expanded its portfolio in this category.

Furthermore, exports of the company's beverage products increased by 6.7 percent during the period, driven by strong performances in soda and coffee categories. Conversely, the alcoholic beverage division faced an 8.2 percent drop in operating profit, down to 2.9 billion won for the second quarter.

Lotte Chilsung Beverage has expressed its intention to enhance profitability in its global business operations and to expand production capacity in order to boost competitiveness. As of 2:27 p.m., shares of Lotte Chilsung Beverage were trading at 135,300 won, reflecting a 3.84 percent increase from the previous session. Notably, the second-quarter report was released during market hours.