Lotte Wellfood reported an 89% year-on-year increase in second-quarter operating profit, driven by strong growth in India and other overseas markets as well as improved operational efficiency in South Korea.

The South Korean food company said its consolidated operating profit reached 64.7 billion won ($46 million) in the second quarter, up 89% from a year earlier. Revenue rose 8.6% to 1.16 trillion won, while its operating margin reached 5.6%.

For the first half of the year, Lotte Wellfood posted revenue of 2.18 trillion won, up 7% from the same period a year earlier. Operating profit nearly doubled, rising 98% to 100.5 billion won, with an operating margin of 4.6%.

Overseas operations emerged as a major driver of the earnings improvement. Revenue from overseas subsidiaries increased 28% year on year to 311.2 billion won in the second quarter, while operating profit surged 133% to 29.6 billion won.

Overseas subsidiaries accounted for about 46% of Lotte Wellfood's total operating profit during the quarter, highlighting their growing contribution to the company's profitability.

India was among the strongest-performing markets. Increased utilization of Lotte Wellfood's new ice cream plant in Pune expanded local production and supply, while sales of Choco Pie products also increased.

The company has been expanding its manufacturing footprint in India as it seeks to capture growing demand in one of its key overseas markets. Higher local production capacity is expected to support further expansion of both confectionery and ice cream businesses.

Kazakhstan also contributed to overseas growth, with both domestic sales and exports increasing during the quarter. Lotte Wellfood plans to use India and Kazakhstan as key bases for expanding the Lotte brand and strengthening its distribution network across overseas markets.

In South Korea, the company focused marketing efforts on major brands including Pepero, Xylitol, Kancho and World Cone. Earlier-than-usual summer heat also boosted demand for ice cream products during the second quarter.

Lotte Wellfood said it will continue expanding its overseas business in the second half of the year, particularly in India and Kazakhstan. The company plans to strengthen local distribution networks while using K-culture-related marketing to increase brand awareness among overseas consumers.

In the domestic market, Lotte Wellfood plans to maintain its focus on core brands while continuing cost and operational efficiency measures amid uncertainties including volatile raw material prices and geopolitical risks.

The sharp increase in overseas operating profit, which significantly outpaced overseas revenue growth, suggests that Lotte Wellfood's international operations are becoming an increasingly important source of earnings as well as revenue growth. Further increases in Indian production and distribution could raise the overseas business's contribution to the company's overall results.