CJ CheilJedang Surpasses 1 Trillion KRW Annual Operating Profit for the First Time... Overseas Sales Account for 60%

[Asia Economy Reporter Seungjin Lee] CJ CheilJedang announced on the 8th that its sales last year grew 8.5% year-on-year to KRW 24.2457 trillion, and operating profit increased by 51.6% to KRW 1.3596 trillion.

Excluding CJ Logistics' performance, sales rose 10.9% to KRW 14.1637 trillion, and operating profit increased 73% to KRW 1.0415 trillion. This is the first time CJ CheilJedang's annual operating profit has exceeded KRW 1 trillion. CJ CheilJedang explained that proactive business structure innovation led to significant profitability improvement, and global business grew sharply, pushing overseas sales ratio above 60%.

The Food Business Division posted sales of KRW 8.9687 trillion, up 12% from the previous year. Domestic sales remained at a similar level to the previous year, but overseas sales grew 31%, driving growth. Overseas sales including Schwan's (KRW 2.8322 trillion) reached KRW 4.1297 trillion, accounting for about 46% of the total. This achievement was driven by K-food products led by Bibigo dumplings strengthening their position in mainstream markets such as the U.S. In particular, the aggressively pursued profitability improvement strategy translated into results, with operating profit rising 49.1% to KRW 511 billion. Schwan's operating profit (excluding PPA) increased by about 65%.

The Bio Business Division, focusing on amino acids and seasoning materials, recorded sales of KRW 2.9817 trillion, up 7.9% year-on-year, and operating profit rose 34.2% to KRW 312.2 billion. Profitability improved significantly, with an operating margin reaching double digits (10.5%) for the first time in eight years since 2012. CJ CheilJedang analyzed that the increase in sales proportion of high-margin products such as tryptophan, valine, and arginine, along with portfolio diversification based on R&D competitiveness and strengthened cost competitiveness, drove the operating profit growth.

CJ Feed&Care (feed + livestock) recorded sales of KRW 2.2133 trillion, up 11% year-on-year, supported by increased demand in China and Vietnam and rising pork prices. Operating profit also increased significantly due to favorable market conditions in Vietnam, reaching KRW 219.3 billion.

Since the second half of 2019, CJ CheilJedang has taken proactive crisis response measures through high-intensity structural improvements such as strengthening profitability and improving financial structure. Despite growing global uncertainties due to COVID-19, the company created new opportunities in overseas business, achieving not only external growth but also strengthening internal stability.

CJ CheilJedang stated, “While focusing capabilities on core products and businesses, we will continue innovative growth through new product development for future preparation, strategic R&D investment, and securing structural competitiveness, establishing ourselves as a truly ‘global company.’”

This content was produced with the assistance of AI translation services.