# Lotte Confectionery (280360.KO)

Canonical: https://gigainvestors.com/s/280360.KO

Analysis as of: 2026-10-16T07:44:53.660Z. Financial observations: FY2017–FY2026.

Listing currency: KRW. Reporting currency: KRW.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: KRW 120,000.00 per share; close as of 2026-10-15.

Estimated value: low KRW 112,785.60 per share, central KRW 123,020.45 per share, high KRW 136,645.21 per share. Buy at or below the central value KRW 123,020.45 per share. Valuation as of 2026-10-16T07:44:53.660Z; scenarios are not confidence intervals.

Expected annual return: 10.3% at the stated quote. About 10.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; KR 10-year bond 4.2% + 4 points).

## Checklist

### understandable: pass

- 2 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 2

- Years with a net loss: 0

- Operating margin variation: 0.25×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.04×

- FY2019: 0.05×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.04×

- FY2023: 0.04×

- FY2024: 0.04×

- FY2025: 0.03×

- LTM to Jun 2026: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.4pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.1%

- ROIC, second-lowest year: 2.5%

- Typical minus recent gross margin: 6.4 pp

- Typical gross margin (annual median): 33.5%

- Recent gross margin (lower of latest and 3-year median): 27.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 6.7%

- ROIC including acquisitions, ten-year median: 2.1%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 0.4%

- FY2018: 2.6%

- FY2019: 4.6%

- FY2020: 5.3%

- FY2021: 4.6%

- FY2022: 3.5%

- FY2023: 4.3%

- FY2024: 4.1%

- FY2025: 2.5%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.38×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: KRW 117B

- Net income, five-year total: KRW 309B

- Return on incremental invested capital: 9.3%

- Working capital / revenue, annual change: -4.2 pp

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.85×

- FY2022: 1.40×

- FY2023: 0.86×

- FY2024: -0.66×

- FY2025: 0.24×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks unrelated to price (informational)

- ROIC first 3 years vs last 3 years: 2.6% vs 4.1%

- Per-share earnings: 1460.11 to 8176.00 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 5-year annual growth: 6.6%

- Market cap gain: KRW 399B

- Cumulative retained earnings: KRW 616B

- Diluted shares, 5-year annual growth: 6.6%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 33.3%

- Per-share value change: KRW 7K

- Per-share value, starting three-year median: KRW 1K

- Per-share value, ending three-year median: KRW 8K

- Buybacks concentrated in cheaper years (correlation): -0.50

- Average buyback yield: 0.8%

- Buyback history: 3 years

- Debt-funded buybacks: No

- ROIC, first three-year median: 2.6%

- ROIC, last three-year median: 4.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: KRW 482.13

- FY2018: KRW 1K

- FY2019: KRW 6K

- FY2020: KRW 6K

- FY2021: KRW 5K

- FY2022: KRW 6K

- FY2023: KRW 8K

- FY2024: KRW 10K

- FY2025: KRW 8K

### accounting: pass

- Sloan accruals: -3.5%

- Receivables to sales index (DSRI): 1.04×

- Restructuring years, last five: 0

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.20×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.14×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.4%

- FY2018: -6.9%

- FY2019: -5.6%

- FY2020: -6.3%

- FY2021: -6.7%

- FY2022: -1.1%

- FY2023: -9.1%

- FY2024: -4.6%

- FY2025: -3.5%

## Holders

## Price story

Down 35% since Jun 2024 · sales +3.4%

Story as of 2026-10-16T10:00:13.243Z; price observation 2026-10-15.

Price needs cash profits to grow 0.4% a year for ten years

### Sales · FY2025–2026

sales +3.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: KRW 405B 

- FY2018: KRW 1.69T 

- FY2019: KRW 2.09T 

- FY2020: KRW 2.08T 

- FY2021: KRW 2.15T 

- FY2022: KRW 3.20T 

- FY2023: KRW 4.07T 

- FY2024: KRW 4.04T 

- FY2025: KRW 4.22T 

- FY2026: KRW 4.36T 

### Gross margin · FY2025

gross margin 27.1%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2017: 39.3% 

- FY2018: 35.8% 

- FY2019: 33.5% 

- FY2020: 34.6% 

- FY2021: 34.2% 

- FY2022: 28.5% 

- FY2023: 27.8% 

- FY2024: 29.6% 

- FY2025: 27.1% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in confectioners; annual sales are KRW 4.2 trillion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2025: revenue 4215952626180; grossProfit 1143401399800; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 280360.KO: Lotte Wellfood Co.,Ltd engages in the manufacture and sale of various confectionery products in South Korea and internationally. Its products include chewing gums, chocolates, biscuits, ice-creams, cakes, snacks, candies, bread, frozen cooked foods, HMR, ham/sausages, dairy products, baby food, edible fats and oils, and food ingredients. The company was formerly known as Lotte Confectionery Co., Ltd. and changed its name to Lotte Wellfood Co.,Ltd in April 2023. Lotte Wellfood Co.,Ltd was founded in 1967 and is headquartered in Seoul, South Korea.

### Why customers stay

Margins ranged from 27.1% to 29.6% during 2023–25; it earns 4.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2023: grossProfit / revenue = 27.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2024: grossProfit / revenue = 29.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2025: grossProfit / revenue = 27.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); 9-year return on capital observations [[2017,0.004135074638338951],[2018,0.0262623479370834],[2019,0.046053241242717105],[2020,0.05342136386496407],[2021,0.04565112172985987],[2022,0.034658979339547945],[2023,0.04273975613199477],[2024,0.04137673886176028],[2025,0.025449347242568855]]; median 0.04137673886176028. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Earns 9.3% on new investment; paid dividends in 9 of 9 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2018: growth capex 0; upkeep 89137947110; owner earnings 95586833750. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2019: growth capex 0; upkeep 78693536770; owner earnings 76167029676. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2020: growth capex 0; upkeep 83946985410; owner earnings 73041752350. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2021: growth capex 24681927860; upkeep 118260480590; owner earnings 29549441840. Growth capex / owner earnings = 0.8352756032971485.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2022: growth capex 0; upkeep 127065130250; owner earnings 65784917750. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2023: growth capex 136905543190; upkeep 190675000000; owner earnings 60577348854. Growth capex / owner earnings = 2.2600121296156717.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); FY2025: growth capex 96381359005.18396; upkeep 255046490734.81604; owner earnings 17065457461.18396. Growth capex / owner earnings = 5.6477454076110805.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); Incremental return on capital 0.09257594754087674, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); Dividend observations: [[2017,1177266720],[2018,1177266720],[2019,9555062090],[2020,9667245120],[2021,10982778700],[2022,11027149450],[2023,21020033430],[2024,27239563110],[2025,29608420560]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 69.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); 280360.KO SharesStats.PercentInsiders = 69.30199999999999 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 0.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:44:53.660Z); Ten-year compound average after fade. Initial solved rate -0.006475515421804856. Price 120000; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03.  Closing-price date 2026-10-15.

## Monthly share-price history (KRW per share)

- 2017-10: KRW 186,000.00 per share

- 2017-11: KRW 149,500.00 per share

- 2017-12: KRW 146,000.00 per share

- 2018-01: KRW 175,000.00 per share

- 2018-02: KRW 174,000.00 per share

- 2018-03: KRW 174,000.00 per share

- 2018-04: KRW 190,000.00 per share

- 2018-05: KRW 183,000.00 per share

- 2018-06: KRW 181,000.00 per share

- 2018-07: KRW 158,000.00 per share

- 2018-08: KRW 166,000.00 per share

- 2018-09: KRW 180,500.00 per share

- 2018-10: KRW 159,000.00 per share

- 2018-11: KRW 167,000.00 per share

- 2018-12: KRW 151,000.00 per share

- 2019-01: KRW 174,000.00 per share

- 2019-02: KRW 179,000.00 per share

- 2019-03: KRW 185,000.00 per share

- 2019-04: KRW 184,500.00 per share

- 2019-05: KRW 160,000.00 per share

- 2019-06: KRW 172,500.00 per share

- 2019-07: KRW 148,000.00 per share

- 2019-08: KRW 151,000.00 per share

- 2019-09: KRW 147,000.00 per share

- 2019-10: KRW 140,500.00 per share

- 2019-11: KRW 150,000.00 per share

- 2019-12: KRW 149,500.00 per share

- 2020-01: KRW 137,500.00 per share

- 2020-02: KRW 135,000.00 per share

- 2020-03: KRW 105,500.00 per share

- 2020-04: KRW 128,000.00 per share

- 2020-05: KRW 121,000.00 per share

- 2020-06: KRW 105,500.00 per share

- 2020-07: KRW 110,000.00 per share

- 2020-08: KRW 100,000.00 per share

- 2020-09: KRW 101,500.00 per share

- 2020-10: KRW 98,100.00 per share

- 2020-11: KRW 103,000.00 per share

- 2020-12: KRW 102,000.00 per share

- 2021-01: KRW 104,500.00 per share

- 2021-02: KRW 124,000.00 per share

- 2021-03: KRW 133,000.00 per share

- 2021-04: KRW 136,000.00 per share

- 2021-05: KRW 153,500.00 per share

- 2021-06: KRW 138,500.00 per share

- 2021-07: KRW 142,000.00 per share

- 2021-08: KRW 138,500.00 per share

- 2021-09: KRW 127,000.00 per share

- 2021-10: KRW 128,500.00 per share

- 2021-11: KRW 111,500.00 per share

- 2021-12: KRW 120,500.00 per share

- 2022-01: KRW 116,000.00 per share

- 2022-02: KRW 115,500.00 per share

- 2022-03: KRW 117,500.00 per share

- 2022-04: KRW 125,000.00 per share

- 2022-05: KRW 113,500.00 per share

- 2022-06: KRW 119,000.00 per share

- 2022-07: KRW 117,500.00 per share

- 2022-08: KRW 125,000.00 per share

- 2022-09: KRW 138,500.00 per share

- 2022-10: KRW 130,000.00 per share

- 2022-11: KRW 129,000.00 per share

- 2022-12: KRW 122,500.00 per share

- 2023-01: KRW 119,900.00 per share

- 2023-02: KRW 120,200.00 per share

- 2023-03: KRW 109,400.00 per share

- 2023-04: KRW 105,900.00 per share

- 2023-05: KRW 106,000.00 per share

- 2023-06: KRW 101,400.00 per share

- 2023-07: KRW 95,000.00 per share

- 2023-08: KRW 111,400.00 per share

- 2023-09: KRW 109,200.00 per share

- 2023-10: KRW 114,000.00 per share

- 2023-11: KRW 123,500.00 per share

- 2023-12: KRW 123,800.00 per share

- 2024-01: KRW 127,100.00 per share

- 2024-02: KRW 131,200.00 per share

- 2024-03: KRW 122,200.00 per share

- 2024-04: KRW 134,000.00 per share

- 2024-05: KRW 144,000.00 per share

- 2024-06: KRW 183,400.00 per share

- 2024-07: KRW 179,700.00 per share

- 2024-08: KRW 140,500.00 per share

- 2024-09: KRW 141,100.00 per share

- 2024-10: KRW 130,500.00 per share

- 2024-11: KRW 111,700.00 per share

- 2024-12: KRW 111,600.00 per share

- 2025-01: KRW 102,700.00 per share

- 2025-02: KRW 111,200.00 per share

- 2025-03: KRW 116,400.00 per share

- 2025-04: KRW 118,500.00 per share

- 2025-05: KRW 119,200.00 per share

- 2025-06: KRW 115,500.00 per share

- 2025-07: KRW 123,400.00 per share

- 2025-08: KRW 116,200.00 per share

- 2025-09: KRW 115,100.00 per share

- 2025-10: KRW 114,000.00 per share

- 2025-11: KRW 120,900.00 per share

- 2025-12: KRW 114,600.00 per share

- 2026-01: KRW 116,300.00 per share

- 2026-02: KRW 127,000.00 per share

- 2026-03: KRW 111,100.00 per share

- 2026-04: KRW 121,100.00 per share

- 2026-05: KRW 112,900.00 per share

- 2026-06: KRW 95,300.00 per share

- 2026-07: KRW 103,000.00 per share

- 2026-08: KRW 145,700.00 per share

- 2026-09: KRW 122,700.00 per share

- 2026-10: KRW 118,800.00 per share

## Annual estimated value (KRW per share)

- FY2021: low KRW 175,192.84 per share, central KRW 192,933.35 per share, high KRW 216,549.73 per share

- FY2022: low KRW 206,604.81 per share, central KRW 228,848.94 per share, high KRW 258,460.59 per share

- FY2023: low KRW 160,398.94 per share, central KRW 174,634.02 per share, high KRW 193,583.93 per share

- FY2024: low KRW 120,794.40 per share, central KRW 131,064.32 per share, high KRW 144,735.78 per share

- FY2025: low KRW 120,482.87 per share, central KRW 130,380.49 per share, high KRW 143,556.32 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.