Lotte Shopping reports 45.5 billion won second quarter net

Lotte Department Store’s branch in Jung District, central Seoul. [LOTTE SHOPPING]

Lotte Shopping logged a net profit of 45.5 billion won ($35.1 million) in the second quarter, compared to a net loss of 34.5 billion won in the same quarter the previous year due to customers returning to its branches.

The figure beat market expectations of a 5.9 billion won net profit compiled by FnGuide.

It reported revenue of 3.9 trillion won, edging down 0.017 percent on year. The company missed analyst expectations of a 3.99-trillion-won revenue.

Lotte Shopping runs various retail and entertainment brands, such as Lotte Department Store, Lotte Cinema, Lotte Mart and Lotte On.

Lotte Department Store sales rose 14.9 percent on year to 828 billion won, and its operating profit rose 68.5 percent to 104 billion won.

The company said sales of products rose due to more customers on the falling number Covid-19 cases.

Sales from branches in China fell 35.8 percent on year to 5 billion won due to the rising number of Covid-19 cases and the lockdown in Shanghai. However, the drop was offset by sales from other countries it has branches in. Sales from Indonesia rose 45.2 percent on year and and sales from Vietnam rose 44.3 percent.

Sales at Lotte Cultureworks, which operates Lotte Cinema, rose 180.6 percent on year to 121 billion won. The operating profit was 11 billion won, compared to a operating loss of 36 billion won the previous year.

The company says the easing of pandemic regulations at theaters led to higher box office sales. Food sales also helped. Starting in April, movie-goers were allowed to eat at theaters, which wasn’t allowed since March 2021.

Its hypermarket division, which includes Lotte Mart and Lohbs, logged sales of 1.4 trillion won, up 1.2 percent. The operating loss was 7 billion won, compared to a 26-billion-won operating loss the previous year.

Its Lotte On e-commerce business reported sales of 26 billion won, down 10.5 percent on year. Operating loss was 49 billion won, compared to a 32 billion won operating loss.

Despite the fall, the company said the business has potential to grow. Monthly active users on Lotte On was 28 million in the second quarter, up 21.9 percent on year.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]