‘Lotte Confectionery’s revenue to decline in H2’

‘Lotte Confectionery’s revenue to decline in H2’

Lotte Confectionery’s revenue in the second half will decrease, said Hana Financial Investment on Sept. 10, lowering the target price to 180,000 won (US$159.76) from 230,000 won.

Its revenue will decline on increasing costs from price rise of major ingredients and minimum wage hike, hampering profits. Hurt by shrinking market share, first-half revenue from its domestic operations has declined 50 billion won, said analyst Shim Eun-ju.

Meanwhile, it has announced a capital raise with third-party allocation, and Lotte Holdings’ stake will more than double to 48.4 percent from 21.3 percent, she said adding that following this, the confectionery firm’s net assets will be 1.2 trillion won and book-value per share 180,000 won.

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