In the first six months of 2025, Lotte Rakhat Confectionery reported a profit of about $3.9 million, down 53.4%, or $4.4 million, from the same period last year, according to the company’s filing on the Kazakhstan Stock Exchange (KASE) website.
The drop was largely due to a 23.4% fall in gross receipts to nearly $14 million. While revenue from confectionery sales rose year-on-year by about $9 million, production costs increased by $13 million. The biggest rise in costs came from materials — primarily ingredients — which jumped $12 million, or 25%, compared to last year.
General, administrative and selling expenses rose about $600,000, mainly because of higher employee salaries. Meanwhile, investment in fixed assets fell 54.3% to $1 million.
The company’s assets grew by $2.4 million since the start of the year, reaching $144 million, due to higher cash balances. Capital rose $3.9 million to nearly $130 million, while liabilities fell $1.4 million to $13 million.
Lotte Rakhat is one of Kazakhstan’s largest confectionery manufacturers, with a factory in Almaty and a production site in Shymkent. As of July 1, 2025, 95.6% of its shares were owned by South Korea’s Lotte WellFood Co., according to KASE data.
In September 2023, company management announced plans to relocate the Almaty factory to the Almaty region and was seeking a 20- to 30-hectare site. The company projected a $200 million investment in the new facility.
