Seoul: Lotte Chilsung Beverage Co., a subsidiary of South Korea's Lotte Group, announced a 14.7 percent decline in its net profit for 2025, attributing the drop to one-off costs. The company disclosed that its net profit decreased to 51.2 billion won (US$35.3 million) from the previous year's 60 billion won, according to a regulatory filing.

According to Yonhap News Agency, Lotte Chilsung set aside provisions for a voluntary retirement program and wages for long-serving employees during the fourth quarter, leading to the decline in annual earnings. The operating profit also experienced a downturn, falling 9.6 percent to 167.2 billion won from 184.9 billion won, while sales dipped 1.3 percent to 3.97 trillion won from 4.02 trillion won.

The company cited sluggish domestic demand, reduced sales channels like convenience stores and restaurants, and increased weather volatility as factors impacting its beverage and liquor sales, thereby affecting the operating profit. Notably, in the fourth quarter, Lotte Chilsung's net loss expanded to 43.9 billion won from the previous year's 21.7 billion won.

Looking ahead to 2026, Lotte Chilsung aims for an operating profit of 200 billion won with sales reaching 4.1 trillion won. The company plans to introduce new soft drink products in the first half of the year, designed to complement food, while also promoting more nonalcoholic products to align with evolving market trends.