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Retail Trade

Lotte Shopping Co., Ltd.

Company Background

Lotte Shopping is a major South Korean distributor with various sales channels, from department stores to large discount stores to home electronics retailers. It boasts the largest sales among South Korea's distribution-related listed companies.

 

The company is accelerating its overseas expansion, including in China, as stiff regulations at home make high domestic growth unlikely.

 

Most of the company's sales come from Lotte Department Store, Lotte Mart large discount stores and Lotte Hi-mart home appliance stores.

 

Lotte Shopping is the operator of 7-Eleven convenience stores in South Korea, and it also runs Lotte Super, a chain of small and medium-sized supermarkets, Lotte Cinema and a home shopping service. It offers financial services, as well.

 

Lotte Duty Free, the biggest duty-free shop in South Korea, is run by Lotte Shopping group company Hotel Lotte.

 

Given South Korea's aging population and declining birthrate, Lotte Shopping can expect little growth in its home market, especially as large discount stores and convenience stores are subject to strict regulations aimed at protecting smaller shops.

 

The company is focusing on developing new businesses, such as outlet malls. Its department store business has stalled as the result of changing spending habits among the aging society.

 

The major players in Lotte Shopping's overseas expansion are department stores and large discount stores. It is particularly expanding the latter in China, Indonesia and Vietnam.

 

While the company's overseas expansions are still in the upfront-investment phase, it plans to turn these operations into a growth pillar.

Business Summary

Lotte Shopping Co., Ltd. engages in the operation of department stores and supermarkets. It operates through the following business divisions: Department Store, Discount Store, Supermarket and Cinema. The Department Store business provides clothing, accessories, appliances, furniture and food through Lotte Department Store. The Discount Store business offers food, household supplies, clothing and sundries through Lotte Mart. The Supermarket business provides general household products and fresh food through Lotte Supermart. The Cinema business offers film investment, distribution and screening through Lotte Cinema. The company was founded on July 2, 1970 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue15,573.55B13,599.46M
Gross Profit5,373.53B4,692.38M
Operating income201,463.77M175.92M
Income before tax-734,673.58M-641.54M
Net income-292,279.47M-255.23M
EBITDA1,418.08B1,238.33M
Diluted EPS-10,430.04-9.10
Dividends Per Share2,8002.44
Total Assets33,426.53B28,119.06M
Total liabilities21,769.10B18,312.59M
Total equity9,943.91B8,365.02M
Operating cash flow1,525.21B1,331.88M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 17,926.06B 17,820.78B 17,622.00B 16,184.38B 15,573.55B
Gross Profit 6,909.09B 6,841.55B 6,003.35B 5,330.48B 5,373.53B
Operating income 795,155.08M 581,963.36M 420,947.09M 338,806.55M 201,463.77M
Income before tax 254,026.74M -93,861.62M -1,220.14B -784,463.58M -734,673.58M
Net income -136,610.41M -346,737.36M -963,528.55M -809,618.74M -292,279.47M
EBITDA 1,560.25B 1,330.99B 1,939.97B 1,613.55B 1,418.08B
Diluted EPS -18,042 -26,159 -32,045.35 -28,215.42 -10,430.04
Dividends Per Share 5,200 5,200 3,800 2,800 2,800
Total Assets 27,948.48B 26,259.30B 33,972.61B 32,829.40B 33,426.53B
Total liabilities 14,866.25B 13,831.93B 22,181.60B 21,740.64B 21,769.10B
Total equity 12,389.46B 11,705.41B 10,613.61B 9,801.58B 9,943.91B
Operating cash flow 1,408.77B 61,672.33M 1,217.18B 1,061.10B 1,525.21B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 15,856.61M 16,193.08M 15,110.81M 13,716.88M 13,599.46M
Gross Profit 6,111.48M 6,216.66M 5,147.86M 4,517.78M 4,692.38M
Operating income 703.35M 528.80M 360.96M 287.15M 175.92M
Income before tax 224.70M -85.28M -1,046.27M -664.86M -641.54M
Net income -120.83M -315.06M -826.22M -686.18M -255.23M
EBITDA 1,380.13M 1,209.42M 1,663.52M 1,367.54M 1,238.33M
Diluted EPS -15.95 -23.76 -27.47 -23.91 -9.10
Dividends Per Share 4.59 4.72 3.25 2.37 2.44
Total Assets 26,106.66M 23,534.06M 29,376.64M 30,221.30M 28,119.06M
Total liabilities 13,886.55M 12,396.42M 19,180.77M 20,013.47M 18,312.59M
Total equity 11,572.99M 10,490.60M 9,177.75M 9,022.91M 8,365.02M
Operating cash flow 1,246.14M 56.03M 1,043.73M 899.32M 1,331.88M

Valuation Measures

Dec 2021
PER--
ROA-0.88%
ROE-2.96%
Operating margin1.29%
Profit margin-1.87%

Key executives

  • Co-Chief Executive Officer & Director: Sung-Hyun Kang
  • Co-CEO, Director & Head-Lotte Department Store: Junho Jung
  • Head-Compliance Support: Seol-Ah Lee
  • Managing Director: Jong-Hwan Kim
  • Head-Investor Relations: Jihwan Seol

Shareholders

  • Lotte Corp. (40%)
  • SHIN DONG-BIN (10.2%)
  • Lotte Shopping Co., Ltd. (8.8%)
  • National Pension Service of Korea (4.0%)
  • SHIN YOUNG-JA (1.0%)
  • The Vanguard Group, Inc. (1.0%)
  • BlackRock Fund Advisors (0.9%)
  • Hotel Lote Busan Co., Ltd. (0.7%)
  • Dimensional Fund Advisors LP (0.4%)
  • Samsung Asset Management Co., Ltd. (0.3%)

Contact Details

Related Companies

  • Lotte White Flower (Shenyang) Co., Ltd.
  • Lotte Whitening (Chengdu) Co., Ltd.
  • Lotte DMC Development Co., Ltd.
  • Lotte Gimhae Development Co., Ltd.
  • Lotte Tadongtan Co., Ltd.
  • Lotte Properties (Chengdu) HK Ltd.
  • Lotte Properties (Chengdu) Ltd.
  • Lotte Department Store (Chengdu) Co., Ltd.
  • Lotte Department Store (Shenyang) Co., Ltd.
  • Lotte (China) Management Co., Ltd.
  • Lotte Asset Development Co. Ltd. /Shopping Mall Bus/
  • Lotte Shopping Co. Ltd. /Mobile Gift Card Bus/
  • Lotte Ulsan Development Co., Ltd.
  • Lotte Cinema
  • LOTTE Songdo Shopping Town Co., Ltd.
  • Lotte Cultureworks Co., Ltd.
  • LOTTE Properties (Hanoi) Singapore Pte Ltd.
  • Lotte Shopping Holdings (Singapore) Pte Ltd.
  • Lotte GFR Co., Ltd.
  • LOTTE Town Dongtan Co., Ltd.
  • LHSC Ltd.
  • Shenyang SL Cinema Investment Management Co., Ltd.
  • Lotte Hotel & Retail Vietnam Pte Ltd.
  • Shandong Longzhile Cinema Co., Ltd.
  • Lotte Shopping Co. Ltd. /Global Fashion Bus/
  • Lotte Shopping Co. Ltd. /Investment Div/
  • Lotte Business Management (Tianjin) Co., Ltd.
  • Lotte Super Co., Ltd.
  • Himart Logitech Co., Ltd.
  • Lotte Plaza Market

Competitors

  • GS Retail Co., Ltd.
  • CJ Corporation
  • Hyundai Department Store Co., Ltd
  • Hyundai Home Shopping Network Corporation
  • E-MART Inc.
  • Shinsegae Co., Ltd
  • Hanwha Corp
  • KISWIRE LTD
  • LG Electronics Inc.
  • Samsung Electronics Co., Ltd.
  • Central Retail Corporation Public Company Limited
  • GS Holdings Corp.
  • NS Shopping Co., Ltd.
  • Moda-InnoChips Co., Ltd.
  • Harim Holdings Co., Ltd.
  • CJ ENM Co., Ltd.
  • Gwangju Shinsegae Co., Ltd.
  • PT Sumber Alfaria Trijaya
  • CJ CGV Co., Ltd
  • Next Entertainment World Co., Ltd.
  • Gradiant Corporation
  • AK Holdings, Inc.
  • COWELL FASHION Co., Ltd.
  • Hansol Logistics Co., Ltd.
  • Hyungji Elite Inc.
  • ORION Holdings Corporation
  • Savezone I & C Corp.
  • SHOWBOX Corp.
Last Updated on 4 Oct, 2022

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