South Korea's Lotte Shopping successfully turned profitable last year

South Korean retail giant Lotte Shopping announced on the 8th that its operating profit for last year (2023) increased by 31.6% from the previous year to 508.4 billion won (approximately 57 billion yen). Sales is 1
The company achieved a surplus for the first time in seven years with a net profit of 4,555.9 billion won (approximately 1,631.6 billion yen) and 179.7 billion won (approximately 20.1 billion yen).
The company implemented performance improvement measures for each business division and significantly increased operating income.
Ta. It also significantly reduced asset impairment losses, leading to a return to positive net income. An impairment loss is a loss that is reflected in the financial statements when the market value of an asset is less than its book value.
By business sector, department stores performed best. Last year's sales reached a record high of 3,303.3 billion won, an increase of 2.2% from the previous year. Operating profit was 477.8 billion won
Although sales decreased by 3.2% year-on-year, the Jamsil store and main store performed well in South Korea. Overseas, Lotte Mall Westlake in Hanoi, Vietnam exceeds 100 billion won in transaction value in a short period of time.
etc. contributed. Supermarkets (Marts) also significantly increased their operating profits. Sales decreased by 2.9% from the previous year to 5,734.7 billion won, but this was due to product improvements and expansion of integrated purchasing.
As a result, operating profit was 87.3 billion won, an increase of 80.4% from the previous year. Mart's operating profit was at its lowest level in 10 years since 2014.
Mart's sales last year were 1,306.3 billion won, a decrease of 2.7%, but operating income was in the red at 25.6 billion won.
It was converted from. In particular, the Zetaflex Seoul Station store, which was renovated in September last year, was a driving force. Overseas business was also strong. In Vietnam, Mart's operating profit margin is at a high level of 7%.
Maintained. Overall sales for the overseas business were 1,453.2 billion won, and operating profit was 40 billion won, an increase of 4.5% and 47.2% from the previous year, respectively.
On the other hand, the deficit in e-commerce narrowed. Sales were 135.1 billion won, an increase of 19.4% from the previous year, but logistics costs
Despite efforts to improve the efficiency of IT operating expenses, the operating loss was 85.6 billion won. Operating loss decreased by 70.3 billion won from the previous year.
Home electronics retailer "Hi-Mart" saw sales drop by 21.8% to 2,610.1 billion won.
Despite the decline, operating income remained in the black at 8.2 billion won due to healthy inventory and expanded sales of high-margin products.
Home shopping sales decreased by 12.6% to 941.6 billion won, operating profit increased by 89.4%
The sales fell significantly to 8.3 billion won. In the movie theater business, Culture Works' sales increased by 13% to 562.1 billion won due to an increase in the number of spectators, but due to poor performance and increased fixed costs, business
The business loss was 8.4 billion won. Kim Sang-hyun, representative director and vice chairman of Lotte Shopping, said, ``Last year, all business divisions worked to improve profitability and efficiency through customer-centered business development.''
We have improved and achieved a net profit surplus for the first time in seven years." This year, Lotte Shopping will promote the management strategy of "Transformation 2.0" and lead the growth of the industry and dominate the market.
As a leading company, we aim to become a true shopping destination.