Lotte Corp. (004990.KS) unveiled a portfolio upgrade strategy centered on divesting non-core businesses and nurturing new growth areas at an investor relations (IR) event, the company said Friday.
At the IR session, Lotte highlighted improving first-quarter earnings across all business segments and outlined the progress of its portfolio restructuring focused on non-core operations and asset efficiency.
Since 2024, Lotte has been securing liquidity by divesting non-core and low-margin businesses, including the sale of Lotte Wellfood's Jeungpyeong plant, Lotte Chemical Pakistan Ltd. (LCPL), and Lotte Ecowall, as well as consolidating Lotte Chilsung Beverage branches.
The company said it will continue restructuring low-efficiency businesses this year, including the sale of Lotte Rental and the reorganization of Lotte Chemical's Daesan and Yeosu plants, to accelerate improvements in its financial structure. Lotte also disclosed investment and development strategies for new businesses such as biotech, battery and semiconductor materials, and hydrogen.
Lotte Biologics plans to ramp up its global market push by establishing a "dual-site" operating system linking its U.S. Syracuse plant with its Songdo campus following the completion of Plant 1 at the Incheon Songdo campus in the second half of this year.
Lotte Energy Materials is shifting its business portfolio from electric vehicle (EV) battery foil to energy storage system (ESS) batteries and circuit foil materials for artificial intelligence (AI) applications. Lotte Chemical is also strengthening its competitiveness by expanding the share of high-value-added specialty materials, the company said.
In the first quarter of this year, operating profit from Lotte's core business segments — food, retail, chemicals, and hotels — totaled 787.6 billion won, up 181% from a year earlier.
Lotte Shopping posted operating profit of 252.9 billion won, up 71% year-on-year, driven by growth at key domestic and international department store outlets. Lotte E&C recorded operating profit of 50.4 billion won, surging 1,226% from a year earlier. Lotte Wellfood and Hotel Lotte also saw improved profitability. Lotte Wellfood's operating profit reached 35.8 billion won, up 118% year-on-year, while Hotel Lotte posted 74.5 billion won, a 83% increase.
Lotte Chemical swung to an operating profit for the first time in 10 quarters, supported by improved spreads driven by geopolitical variables in the Middle East and gains from plant utilization efficiency.
Lotte said it will continue to focus on enhancing financial stability and corporate value through measures such as reducing Lotte E&C's project financing (PF) contingent liabilities and executing investments efficiently.
About 30 participants, including securities analysts and institutional investors, attended the IR Day held Tuesday. The chief financial officer (CFO) of Lotte Corp., who heads the financial innovation division, was joined by finance and IR executives from key affiliates including Lotte Shopping, Lotte E&C, and Lotte Chemical.
