Convenience Food Growth + Bio Business Earnings Surprise... CJ CheilJedang's Highest Quarterly Performance

Q2 Operating Profit of 469.6 Billion KRW
Highest Quarterly Performance on Record

[Asia Economy Reporter Seungjin Lee] CJ CheilJedang achieved its highest quarterly performance despite rising costs and increased logistics expenses. The food business continued to grow, centered on convenience foods, and the bio business, nurtured as the next-generation food source, recorded an earnings surprise.

On the 10th, CJ CheilJedang announced that its consolidated sales for the second quarter reached KRW 6.3092 trillion, with an operating profit of KRW 469.6 billion. Sales increased by 6.6% and operating profit rose by 22% compared to the same period last year.

By business division, the food business recorded sales of KRW 2.2126 trillion and an operating profit of KRW 129.9 billion. Overseas sales, including the U.S. Schwann’s, amounted to KRW 1.0103 trillion, accounting for half of the total food business sales. A CJ CheilJedang official explained, "Dumplings held the number one market share (38%) in major U.S. retail channels, and sales significantly increased as the ‘K-Food’ trend swept through China, Japan, and other countries."

The bio business division posted sales of KRW 917.6 billion and an operating profit of KRW 193.9 billion, marking increases of 23.5% and 74.8% respectively compared to the previous year, resulting in an earnings surprise. The operating profit margin exceeded 20%. The strategy of responding to rising raw material and logistics costs by diversifying global production bases, as well as fostering high-margin specialty and natural premium food ingredients, was evaluated as effective.

The feed and livestock business also achieved sales of KRW 625.6 billion, up 19% year-on-year, thanks to high value-added products. However, operating profit declined by 13% year-on-year to KRW 56.1 billion due to increased cost burdens from rising grain prices and falling pig prices in the Vietnam region.

A CJ CheilJedang official stated, "Despite the sharp 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 research and development."

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