Lotte Duty Free’s COEX store in downtown Seoul.

Lotte Duty Free has reported first quarter revenue of KRW1,262.9bn ($1,175.8bn) with a strong push from its overseas business in Vietnam.

Revenue from its foreign arms soared by 52% year-on-year on the back of a surplus in Vietnam and Japan’s tax-exempt markets, the latter of which grew by 35%.

In a results statement, Lotte reveals operating profit of KRW24.9bn ($23m) based on K-IFRS consolidated statements (excluding the contribution from Busan and Gimhae airports).

Total domestic sales lifted by 14% year-on-year to reach KRW1,222.8bn ($1,129.1bn), while downtown duty free shop sales boosted by 19% as the seeming thaw in relations between China and South Korea mitigated the impact of THAAD.

AIRPORT SALES -2%

However, airports sales declined by 2% year-on-year. Operating profit from downtown operations posted KRW 100.5bn ($92.8m) and KRW 67.0bn ($61.9m) throughout its airports.

“Although operating profit declined [by] 36% year-on-year due to the THAAD crisis, various cost-cutting effects seem to have been positive,” Lotte confirmed in the statement.

Last month, TRBusiness revealed that the South Korean duty free player is set to open a new downtown store in Da Nang city in Vietnam from October.

As reported in the May Asia Pacific print issue of TRBusiness, Lotte Duty Free’s overseas sales grew by 45% year-on-year to total KRW140bn ($131m) in 2017 – a welcome distraction from troubles on the domestic front.

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