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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Lotte Asahi Beverages, which distributes Asahi beer in South Korea, saw an increase in sales last year as the boycott atmosphere from previous years eased. However, despite the revenue boost, operating profit decreased due to nearly 10 billion KRW in dividend payments to its major shareholders, Lotte Chilsung Beverage and Asahi Group Holdings of Japan.
According to the Financial Supervisory Service (FSS) on Thursday, Lotte Asahi Beverages’ revenue reached approximately 1.609 trillion KRW, marking a 16% increase from the previous year. However, its operating profit declined by 12.8% to around 36.6 billion KRW. Net profit also decreased by 25%, standing at about 29 billion KRW.
Last year, Lotte Asahi Beverages paid out 19.4 billion KRW in dividends, a significant increase of 3,467% compared to 5.6 billion KRW the previous year. Asahi Group Holdings, the largest shareholder with a 50% stake (1.5 million shares), and Lotte Chilsung Beverage, the second-largest shareholder with a 50% stake, each received approximately 9.7 billion KRW in dividends.
The decline in operating profit was also affected by increased advertising and promotional expenses. Advertising costs rose by 49.8%, reaching 15.5 billion KRW, and promotional expenses nearly doubled from under 400 million KRW to around 700 million KRW.
Earlier, Lotte Asahi Beverages raised the price of Asahi beer by 8-20% last month.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
