Lotte Holdings Returns to Profit in Q1 2026 and Announces Share Cancellation

Share cancellation: 5,245,461 common shares (5.26% of outstanding) cancelled, reinforcing shareholder returns.
Consolidated net profit: KRW 14.5 billion (vs. net loss of KRW 595 billion in Q1 2025), turning to profit.
Major subsidiaries improved: Lotte Chemical operating profit KRW 73.5 billion (vs. loss of KRW 126.6 billion), Lotte Shopping operating profit KRW 252.9 billion (vs. KRW 123.9 billion).
Separate (holding) revenue KRW 148.2 billion, operating profit KRW 102.4 billion, net profit KRW 75.4 billion.
Debt ratio: 76.03% (down from 76.52% at end-2025).
Shareholder return policy: target payout ratio of at least 35% of separate net income, supplemented by share cancellation.
Risks: ongoing lawsuits but financial impact seen as limited.
New investments: biopharmaceutical CDMO (Songdo plant), chemical recycling of PET, etc.