Seoul: Lotte Wellfood Co. on Friday reported its first-quarter net income of 16.7 billion won (US$11.4 million), down 26.6 percent from a year earlier. The company, known for its confectionery, ice cream, and processed food products, revealed the figures in a regulatory filing, indicating a challenging start to the year.

According to Yonhap News Agency, Lotte Wellfood posted an operating profit of 35.8 billion won for the quarter, a significant increase from the 16.4 billion won recorded a year ago. Despite the rise in operating profit, the company's sales only climbed by 5.4 percent to reach 1.02 trillion won.

The earnings fell short of market expectations, with analysts predicting an average net profit of 19.1 billion won based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. The deviation from expectations highlights the ongoing financial challenges faced by the company in the competitive food industry.