Lotte duty free profit soars
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South Korean duty-free operator Lotte has reported soaring profit following its decision to partially withdraw from Incheon airport.
In the company’s first half report, it indicated solid worldwide sales accounted for the profit increase, which came to KRW155 billion (US$137 million) – up a staggering 1995 per cent.
Total global sales hit KRW2.7 trillion (US$2.4 billion), almost all of which came from domestic sales.
Three out of four concessions at Incheon were shuttered by the firm following long-running losses. The closures have saved the firm considerable expenditure on rent.
The positive results have encouraged Lotte to expect overseas sales in excess of KRW200 billion (US$177.7 million) this year, following the launch of additional stores in Vietnam and elsewhere.
Questions & Answers
Q.What was the main reason for Lotte's significant profit increase?
What was the main reason for Lotte's significant profit increase?
The profit increase was primarily due to solid worldwide sales. Also, the company saved considerable expenditure on rent after closing concessions at Incheon airport.
Q.How much profit did Lotte report in its first half?
How much profit did Lotte report in its first half?
Lotte reported a profit of KRW155 billion (US$137 million) in its first half. This represents a 1995 per cent increase compared to the previous period.
Q.Where did most of Lotte's global sales come from?
Where did most of Lotte's global sales come from?
Almost all of Lotte's total global sales, which reached KRW2.7 trillion (US$2.4 billion), came from domestic sales within South Korea.
Q.What are Lotte's expectations for overseas sales this year?
What are Lotte's expectations for overseas sales this year?
Lotte expects overseas sales to exceed KRW200 billion (US$177.7 million) this year. This forecast follows the launch of new stores in Vietnam and other international locations.
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