Lotte Chilsung Beverage makes its money from drinks. Beverages such as Chilsung Cider, Pepsi-Cola and Icis water carry the largest weight, joined by liquor such as the soju 'Chum-Churum' and 'Saero', and an overseas axis in Pepsi-Cola Products Philippines, a 72.9%-owned subsidiary. Q1 preliminary results released on May 4 confirmed a 91% rise in operating profit; the company managed net debt of ₩1.5 trillion via an April bond issuance, and it kept a ₩3,400 per-share dividend (72% payout ratio) even in a year of lower profit. The notable point right now is that Pepsi Philippines has turned to profit and domestic beverages have improved margins through zero-calorie products, so the valuation on this year's recovered profit is low, with P/B of 0.62x and a 3.4% dividend providing support. On the other hand, interest costs on ₩1.5 trillion of net debt and weaker domestic consumption amid high inflation mean the recovery could slow if peak-season sales fall short of expectations.
At-a-glance assessment financial health · growth · profitability · valuation
- Debt is somewhat higher than equity (debt ratio 281.6%).
- Assets that can be turned to cash within a year fall short of near-term liabilities (current ratio 77.8%).
- Revenue fell 1.3% year over year (3-year trend: mixed).
- Most recent quarter (Q1 2026) revenue was 4.6% higher than a year earlier.
- ROE is 3.1% (controlling-interest basis). It is below the sector average.
- Operating margin is 4.2%.
- P/B is low versus peers too, so it looks cheap on an asset basis as well.
Ownership & governance As of 2022-12-31
Largest shareholder Lotte Corporation 45% (corporate)
Controlling bloc incl. related parties 100%
With the controlling bloc holding 100%, control is very secure but the free float is thin.
🔎 In-depth analysis
- Lotte Chilsung Beverage makes its money from drinks.
- It has three main legs.
- The first is beverages, which includes products such as Chilsung Cider, Pepsi-Cola, Icis water and zero-calorie sparkling drinks, and carries the largest weight in company revenue.
- The second is liquor, which includes the sojus 'Chum-Churum' and 'Saero', cheongju, and RTD (pre-mixed liquor sold in cans and bottles).
- The third is overseas, where 'Pepsi Philippines', a 72.9%-owned subsidiary, produces and sells carbonated drinks such as cola and Mountain Dew locally.
- In other words, on top of domestic beverages and soju there is one overseas axis in the Philippines.
- The latest close is ₩99,300 and market capitalization is ₩921.4 billion.
- The price sits below its 20-day line (₩100,915) and below its 60-day line (₩110,758).
- Trading below both its short-term and medium-term moving averages, the trend is on the depressed side.
- The RSI (a supplementary gauge that scores upward versus downward force over the past 14 days on a 0-100 scale) is 41.0, a neutral level.
- The one-month change is -2.6%, the three-month change is -12.9%, and the position versus the 52-week high is -33.0%.
- Relative strength versus the KOSPI is 13 (on a 1-99 scale, computed from returns against the index over the past year with more recent performance weighted more heavily; higher means stronger than the market).
- That places it in roughly the top 87% of all stocks by strength.
- Over the past three months it lagged the index by 30.6%.
- Chart reading is best done alongside trading volume and disclosure dates.
- Let me unpack the valuation metrics at a beginner's level.
- On last year's confirmed results, the P/E ratio (how many years of profit the price represents) is 19.51x, which looks high.
- But this figure is based on 2025, when profit was at bottom (net profit ₩47.2 billion, down 20% year-on-year), so there is a trap that makes it look more expensive than it really is.
- The P/B (how many times book net assets the price represents) is 0.61x, trading below net assets.
- ROE (how much is earned on equity in a year) is 3.1%, still low.
- Finances carry a fair amount of debt.
- The debt ratio (debt against equity) is 281.6%, and net debt (total borrowings minus cash) is ₩1.5 trillion.
- That said, cash-generating power is worth noting.
- The FCF yield (cash actually earned relative to market cap) is a high 12.9%, so even with heavy debt, ample cash comes in each year.
- EV/EBIT (enterprise value divided by operating profit, a debt-inclusive version of the P/E) is 14.6x.
- The dividend yield is 3.4% (₩3,400 per share), with some dividend appeal within the beverage sector.
- The past three years were a stretch of retreating profit.
- Net profit fell from ₩165.9 billion in 2023 to ₩59.1 billion in 2024 and ₩47.2 billion in 2025.
- Revenue in 2025 fell 1.3% year-on-year to ₩3.97 trillion, the result of weaker domestic consumption combined with a slump at the overseas subsidiary.
- Then in Q1 2026 the picture changed.
- Q1 operating profit rose 91% year-on-year to ₩47.8 billion, and net profit surged 266% to ₩25.3 billion.
- The rebound rests on three axes: the beverage head office grew operating profit 62% by leading with zero-calorie products, liquor grew 9.6% on soju and RTD, and Pepsi Philippines - long a drag - turned to profit (operating profit ₩5.4 billion).
- Beverages are a seasonal business that sells most in summer, so Q2-Q3 are the peak.
- With the profit trajectory already turning up in Q1, this year's profit is seen recovering substantially from last year's bottom.
- Even if last year's P/E looks high, on this year's recovered profit the multiple is far lower.
- Recent disclosures split between content supporting the earnings rebound and financial management.
- The Q1 preliminary results disclosure on May 4 confirmed a 91% rise in operating profit.
- In May the company held two investor presentations (IR) announcing the earnings rebound.
- In April several disclosures related to debt-security (corporate bond) issuance followed, best understood as fund-raising activity to manage the ₩1.5 trillion of net debt.
- In June it disclosed a corporate governance report.
- The dividend is ₩3,400 per share (a 72% payout ratio on last year's confirmed results), and it is notable that the dividend was maintained even in a year of lower profit.
- The points to watch are clear.
- The strength is that the profit direction has turned up.
- As Pepsi Philippines turned to profit, the overseas business, once a burden, is starting to become a support.
- Domestic beverages have also improved margins through zero-calorie products.
- The share price has not yet reflected this rebound, so the valuation on this year's recovered profit is low.
- At a P/B of 0.62x it is cheaper than net assets, and a 3.4% dividend also provides support.
- There are cautions too.
- With heavy debt, interest costs on ₩1.5 trillion of net debt eat into profit.
- Domestic beverages and liquor are exposed to weaker consumption amid high inflation, so if peak-season sales fall short of expectations the recovery could slow.
- In sum, if the earnings rebound carries through the summer peak the undervaluation appeal comes to the fore, while if domestic consumption freezes again or interest burdens grow, the recovery is delayed.
🔎 Valuation vs peers Undervalued
Large domestic food and beverage companies. Selected as a peer set with a similar business mix (domestic-beverage and liquor centred, holding an overseas subsidiary).
| Peer | P/E | P/B | ROE |
|---|---|---|---|
| Orion | 14.00x | 1.41x | 10.05% |
| Lotte Wellfood | 12.97x | 0.43x | 3.30% |
| CJ CheilJedang | — | 0.41x | -8.10% |
On last year's confirmed results a P/E of 19.9x looks expensive, but this is calculated on 2025 net profit (₩47.2 billion), a three-year low - a distortion common in profit-inflection stocks. Q1 operating profit jumped 91%, turning the profit direction up, and on this year's recovered profit reflecting that, the multiple falls sharply. The P/B of 0.62x is lower than Orion (1.44x) and similar to Lotte Wellfood (0.43x), a discount to net assets. Adding in cash-generating power at a 12.9% FCF yield and a 3.4% dividend, the valuation at the early stage of the recovery phase is judged to be in undervalued territory. That said, interest costs on ₩1.5 trillion of net debt and weaker domestic consumption are the variables governing the pace of recovery.
Price history Close · MA20 · MA60
The latest close is ₩99,300 and the market capitalization is ₩921.4 billion. The price sits below its 20-day moving average (₩100,915) and below its 60-day moving average (₩110,758). It is under both its short- and medium-term moving averages, so the trend looks subdued. The RSI (a supplementary indicator that gauges the strength of gains versus losses over the past 14 days on a 0-100 scale) is 41.0, a neutral level. The one-month change is -2.6%, the three-month change is -12.9%, and the position relative to the 52-week high is -33.0%. Relative strength versus the KOSPI is 13 (on a 1-99 scale, converted from returns against the index over the past year with more weight on recent performance; higher means stronger than the market). It is stronger than roughly 13% of all stocks. Over the past three months it lagged the index by 30.6%. Chart interpretation is best done alongside trading volume and the dates on which disclosures occur.
Relative performance stock vs index · start = 100
Excess return vs index · 3M -30.58% / 6M -51.47% / 12M -67.46%
Key metrics vs whole-market median
Valuation
The P/E of 19.51x is above the whole-market median (13.81x). The P/B of 0.61x is below the whole-market median (1.15x). That said, this P/E is based on last year's (trailing) results. With recent quarterly earnings up sharply, the trailing P/E can look higher than it really is, so a precise read is best done on this year's expected (forward) earnings.
Enterprise value (EV)
EV = market cap + net debt. It reflects cash and debt, so it captures the real cost of the whole business that market cap alone misses; lower multiples are cheaper relative to earnings or sales.
Profitability & financials
Return on equity (ROE) is 3.1%, below the whole-market average (5.0%). The operating margin is 4.2%. The debt ratio is 281.6%, so the financial structure is somewhat high.
Growth FY2025 · annual report (consolidated)
| Item | 2023 | 2024 | 2025 | YoY |
|---|---|---|---|---|
| Revenue | $2.1B | $2.7B | $2.6B | -1.33% ↓ slower |
| Operating profit | $139.6M | $122.6M | $110.8M | -9.61% ↑ faster |
| Net profit | $109.9M | $39.2M | $31.3M | -20.09% ↑ faster |
| 5-year | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $1.7B | $1.9B | $2.1B | $2.7B | $2.6B |
| Operating profit | $120.8M | $147.7M | $139.6M | $122.6M | $110.8M |
| Net profit | $90.9M | $86.9M | $109.9M | $39.2M | $31.3M |
| Revenue CAGR | 4-yr avg 12.20% | ||||
Revenue fell 1.3% year over year (2023 ₩3.2 trillion → 2024 ₩4.0 trillion → 2025 ₩4.0 trillion), and the three-year trend is 'mixed'. The rate of decline widened from the prior year. Operating profit fell 9.6% year over year. That said, the decline narrowed. Over the 5 years on record, revenue compound annual growth (CAGR) is 12.2%. The two-year revenue CAGR is 11.0%. In the most recent quarter (Q1 2026), revenue was 4.6% higher than the same period a year earlier.
Latest quarterly results Q1 2026 · vs year-ago
Technical indicators
What stands out
- P/E and P/B are both low versus peers, so the price looks inexpensive relative to earnings and assets.
- The dividend yield, at 3.4%, is on the high side.
Points to watch
- Revenue fell 1.3% year over year (3-year trend: mixed).
Recent news & events searched · sourced
- 2026-05-04EarningsQ1 2026 preliminary results disclosure. Consolidated operating profit ₩47.8 billion, up 91% year-on-year; net profit ₩25.3 billion, up 266%. A clear profit rebound after three years.Confirms profit hit bottom and turned up. A signal that resolves the distortion in valuation based on last year's low (medium-term positive). Source
- 2026-05-12IRInvestor presentation (IR) held. Explained the Q1 rebound results and business direction to the market.Communicates the rebound background (zero-calorie beverages, overseas turn to profit) directly to investors (draws short-term attention). Source
- 2026-04-17UpdateSecurities registration statement for debt-security (corporate bond) issuance. Fund-raising to manage ₩1.5 trillion of net debt.An activity that continues the borrowing structure; depending on interest-rate levels, interest costs affect profit (medium-term caution). Source
- 2026-06-01FilingCorporate governance report disclosure. Discloses governance status including the board and shareholder returns.Reference material for gauging the continuity of shareholder-return policy such as dividends (neutral). Source
Figure cross-check computed ↔ external
Recent filings
- 2026-06-01Corporate governance report
- 2026-05-29Large-business-group status disclosure
- 2026-05-14PeriodicQuarterly report
- 2026-05-12Disclosure
- 2026-05-06Disclosure
- 2026-05-04EarningsFair-disclosure notice
- 2026-04-28OwnershipLargest-shareholder ownership change report
- 2026-04-23Earnings disclosure
- 2026-04-23Disclosure
- 2026-04-22Disclosure
- 2026-04-17Disclosure
- 2026-04-17Amended filing
📖 Plain-language glossary — expand if you are new to this
- P/E
- How many times a year's net profit the price is worth (lower is cheaper relative to earnings). The P/E here is on trailing (last full-year) results; for companies whose earnings swing fast (memory chips and other cyclicals/high-growth), a forward P/E on this year's expected earnings is more accurate.
- P/B
- Price relative to net assets (equity). Around 1x means it trades near book value; below 1x means below book.
- P/S
- Price relative to a year's revenue — useful for growth companies with thin earnings.
- Net debt / EV
- Net debt = interest-bearing debt − cash. Negative means more cash than debt (net cash). EV (enterprise value) = market cap + net debt, closer to what it would cost to buy the whole business.
- EV/EBIT · EV/EBITDA · EV/Sales
- Enterprise value against operating profit (EBIT), EBITDA, or revenue. Unlike P/E these reflect debt and cash; lower is cheaper relative to earnings power or sales.
- FCF / FCF yield
- Free cash flow = operating cash − capex, the cash actually left over. FCF yield = FCF ÷ market cap; higher means more cash generated per unit of market value.
- Intrinsic value (DCF)
- Future free cash flow (or, for some capex-heavy but profitable names, forecast earnings) discounted to today to estimate per-share value. Because it shifts a lot with the discount-rate and growth assumptions, it is shown as a bear/base/bull range, and the basis and assumptions are disclosed in one line beneath it.
- ROE
- How much profit the company earns in a year on its equity (%). Higher means better returns on capital.
- EPS / BPS
- Earnings per share / net assets (book value) per share.
- Operating / net margin
- Profit left from the core business / final profit after tax and interest, per unit of revenue.
- Debt ratio
- Debt relative to equity (%). Higher means more reliance on borrowing (norms vary by sector).
- Current ratio
- Assets convertible to cash within a year against debt due within a year. Above 100% leaves some short-term headroom.
- Interest coverage
- How many times operating profit covers the interest owed. Below 1x means operating profit alone struggles to cover interest.
- Dividend yield / payout ratio
- The year's dividend as a % of today's price / the share of earnings paid out as dividends.
- Revenue CAGR
- Multi-year growth expressed as a single yearly average (compound annual growth rate).
- RSI (short-term signal)
- Whether recent price action is overheated or beaten down. Above 70 is overbought, below 30 oversold.
- MA20 / MA60 (moving averages)
- The 20- and 60-day average price. Price above them signals a firmer short-term trend.
- vs 52-week high
- How far below the past year's peak the price sits now (%).
All figures are for reference only; how they read varies by sector and over time.
Sources: Korea FSC market-price API (data.go.kr), OpenDART, KRX/KIND — public data only.
Bong Stocks presents public-data-based information for reference only. It is not investment advice and contains no target prices, ratings, or buy/sell recommendations. Verify independently before making any decision.