 |
(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Sangjin] On the 26th, IBK Investment & Securities forecasted that Lotte Chilsung would report lackluster performance in the second quarter of this year, but anticipated improvement starting from the third quarter.
IBK Investment & Securities projected Lotte Chilsung's consolidated sales and operating profit for the second quarter to be 1.1148 trillion KRW and 51.7 billion KRW, respectively. These figures are below the market consensus of 1.1150 trillion KRW and 646 billion KRW, as well as IBK Investment & Securities' previous estimates of 1.1283 trillion KRW and 60.1 billion KRW.
Regarding the beverage sector, IBK Investment & Securities noted, "Increased competition from aggressive marketing by competitors appears to have made sales volume growth challenging," and analyzed that "cost increases and a rising won/dollar exchange rate trend will further impact profit margins."
In the alcoholic beverage sector, they explained, "There is a somewhat subdued outlook due to domestic consumption decline in beer sales and discontinuation of 'Cloud Draft'."
IBK Investment & Securities expressed optimism, stating, "Cost pressures are expected to ease from the third quarter, enabling overall profitability improvement," and anticipated "an annual operating profit increase of around 25 billion KRW due to beverage price increases."
Furthermore, despite a 35% rise in the food sector index from April 1st to the previous day, Lotte Chilsung's stock price only increased by 5%. IBK Investment & Securities maintained their 'buy' rating and target price of 180,000 KRW, stating, "We believe significant concerns about performance have already been factored in."
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
