Lotte Wellfood롯데웰푸드

Lotte Wellfood's latest half-year numbers show thin margins, with the share price well below its 52-week high.

Lotte Wellfood, a Korean snack and confectionery maker known for Pepero and Xylitol gum, reported trailing twelve-month revenue of ₩4.36T and operating income of ₩159B to H1 2026, an operating margin of 3.7%. Borrowings of ₩1.09T exceed cash of ₩355B, and the shares closed at ₩118,500 on 27 October 2026, about 24% below the 52-week high of ₩155,000.

What stands out

• Revenue grew 4.2% in 2025 to ₩4.22T, but operating income fell to ₩110B from ₩157B in 2024, so margins compressed from 3.9% to 2.6%.
• Trailing net margin is 2.0% and return on equity is 3.9%, which are low levels for the sector.
• Free cash flow over the trailing period was ₩93B, and the dividend yield is 2.8%.
• The data shows a P/E of 12.7 and P/B of 0.5, below several peers such as Samyang Foods and Otoki on earnings and book value.
• Recent headlines are mostly marketing items, including Pepero Day campaigns in the US and a sponsorship of a type 1 diabetes patient group, plus a new cheese tonkatsu product launch.
• Foreign ownership eased slightly from 14.2% to 13.8% over 60 days, and foreign investors were net sellers over the last 20 days.

What to watch

• Upcoming quarterly results, since the latest filings show margins falling and the company has not yet reported a strong trend reversal.
• The debt load: liabilities are about 99.5% of equity and borrowings exceed cash, according to the latest figures.
• The data includes a DCF fair value of ₩146,428 but the bear case shows ₩0 and the bull case ₩614,016, so the range is very wide and the model's inputs are not explained in the data.