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[Apha Biz=(Chicago) Reporter Paul Lee] Lotte Chilsung Beverage (Lotte Chilsung) has completed the acquisition of management rights for the Philippines Pepsi (PCPPI, Pepsi Cola Products Philippines, Inc) with annual sales of KRW 1 trillion.
The company's annual sales are expected to exceed KRW 4 trillion starting in 2024, when Pepsi's performance in the Philippines is reflected in Lotte Chilsung's consolidated financial statements.
Lotte Chilsung completed the final procedure for acquiring the management rights of Pepsi in the Philippines through the Philippine Securities and Exchange Commission on September 29.
After acquiring a 34.4% stake in Pepsi in the Philippines in 2010, Lotte Chilsung secured an additional stake in joint management with global company Pepsico (PEPSICO), securing its own management rights for the first time in 13 years. It expanded its stake to 73.6% through public purchase on the Philippines Stock Exchange.
With the acquisition of management rights, the Philippines Pepsi will be incorporated as a subsidiary of Lotte Chilsung. Starting in the fourth quarter of this year, management performance, including sales and operating profit of Pepsi in the Philippines, will be reflected in Lotte Chilsung's consolidated financial statements. Sales of Pepsi in the Philippines have continued to grow to 728.7 billion won in 2020, 761.2 billion won in 2021 and 908.7 billion won in 2022, and are expected to surpass 1 trillion won this year.
Lotte Chilsung's annual sales are expected to exceed 4 trillion won from 2024, when Pepsi's annual earnings are fully reflected in its consolidated financial statements. Since reaching 1 trillion won in annual sales in 2001, the company's appearance has quadrupled in 23 years.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
