Lotte Shopping has reported a 2% increase in revenue to KRW7.9tn (US$6.9bn), while its operating profit has dropped to KRW175.56 billion won (US$153.3 m), down 10.1% from a year ago, in the three months ended September.
C-stores thrive but hypermarkets suffer
By business, Lotte’s hypermarkets operation has registered the biggest loss, with sales dropping 3%. it has reversed to a deficit of KRW27bn(US$23.4m), in the Q3 from a net income of KRW3bn(US$2.6m) from a year ago.
The group’s convenience store business, on the other hand, has reported strong performance. Its sales have grown by 5.5% with operating profit uplifting by 48.5%.
Meanwhile, the sales of Lotte’s department stores have also grown 2.3% but an increase in management and marketing costs dented its profitability.
Challenging internal and external environment
The group’s disappointing earnings in the third quarter was driven by a rise in marketing costs amid sagging demand at home and the group-wide investigation over alleged slush funds and embezzlement that recently came to a close.
On the international markets, Lotte has seen its revenue in China drop by 10%, while its operations in Indonesia and Vietnam have both improved with sales growing 1.8% and 32.9% respectively.
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