CJ CheilJedang Reports Q2 Operating Profit of 379.9 Billion KRW... Highest Quarterly Performance Ever

Record Quarterly Sales and Operating Profit
Processed Food Online Sales Up 23%
Number One in U.S. Dumpling Market Share

[Asia Economy Reporter Seungjin Lee] CJ CheilJedang announced on the 9th that its sales in the second quarter of this year reached 6.3092 trillion KRW, up 6.6% from the same period last year, and operating profit increased by 22% to 469.6 billion KRW.

Excluding CJ Logistics' performance, sales grew 8.5% year-on-year to 3.7558 trillion KRW, and operating profit rose 26% to 379.9 billion KRW. Both sales and operating profit marked record highs on a quarterly basis. In particular, CJ CheilJedang achieved double-digit operating profit margin (10.1%) for the first time on a quarterly basis since the adoption of IFRS (International Financial Reporting Standards) in 2011. This was due to continuous improvement of the food business profit structure to minimize the burden of rising raw material prices, while maximizing profitability in the bio business.

The food business division recorded sales of 2.2126 trillion KRW (up 1% year-on-year, +5% excluding exchange rate effects) and operating profit of 129.9 billion KRW (up 3% year-on-year, +6% excluding exchange rate effects). Despite increased burdens such as logistics costs, this was the result of intensive profit structure improvement, business efficiency enhancement, and continuous growth of core product lines such as Bibigo and Hetbahn. In particular, processed food online sales increased by 23%, and B2B sales rose by 9%. The combined sales share of online, B2B, and convenience store (CVS) channels exceeded 30%, diversifying growth channels.

Overseas sales, including the U.S. Schwans, reached 1.0103 trillion KRW (up 4% excluding exchange rate effects) despite adverse factors such as the base effect from last year's COVID-19 and exchange rate declines. Dumplings ranked first in market share (38%) in major U.S. retail channels, and sales also increased significantly in countries such as China and Japan.

The bio business division posted sales of 917.6 billion KRW, up 23.5% year-on-year, and operating profit of 193.9 billion KRW, up 74.8%. The operating profit margin exceeded 20%, establishing itself as a solid high value-added core business. CJ CheilJedang analyzed that strategies such as ▲ proactively responding to rising raw material and logistics costs through global production base diversification ▲ leading the 'low protein trend' in the feed and livestock market based on differentiated technology marketing ▲ fostering high-profit specialty and natural premium food materials such as arginine and taste-enrich contributed to this success.

CJ 'Feed&Care (Feed + Livestock)' achieved sales of 625.6 billion KRW, up 19% year-on-year, supported by strengthened advanced quarantine capabilities against livestock diseases and growth in high value-added aquafeed. Operating profit decreased by 13% to 56.1 billion KRW due to increased cost burdens from rising grain prices and the decline in pork prices in the Vietnam region.

A CJ CheilJedang official stated, “Despite the rapid rise in grain prices and logistics costs, we are continuing solid growth through bold structural improvements,” adding, “We will prepare for the future and accelerate growth through continuous discovery of new growth engines, innovative product development, and strategic R&D investment.”

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