Lotte Corporation reported first-quarter consolidated operating profit of 46.1 billion won, up 156% from a year earlier, the company said in a regulatory filing Thursday.
Revenue rose 1% year-on-year to 3.6222 trillion won during the same period, while net profit turned positive at 14.5 billion won.
The closure of underperforming stores in the retail division and overseas business growth in the food division supported earnings. Profitability also improved on the back of strong overseas performance at food affiliates. Net profit returned to the black, lifted by improved earnings at equity-method subsidiaries Lotte Chemical and Lotte Shopping.
By business segment, the food division stood out. Operating profit in the food division reached 105.7 billion won in the first quarter, up 63.6% from a year earlier. Lotte Wellfood posted operating profit of 35.8 billion won, a 118% increase year-on-year. Lotte Chilsung Beverage's operating profit climbed 91% year-on-year to 47.8 billion won, while Lotte GRS saw its operating profit rise 23% over the same period.
In contrast, the retail, IT services and bio divisions continued to struggle. The retail division and the IT services and pharmaceutical manufacturing division recorded operating losses of 19.7 billion won and 61.5 billion won, respectively, extending their losses.
Korea Seven narrowed its operating loss to 19.7 billion won. The shrinking deficit reflected the closure of low-margin stores, but it was not enough to return the unit to profitability. Lotte Biologics widened its operating loss to 56.2 billion won.
