CJ CheilJedang Surpasses 15 Trillion KRW Annual Sales... "Record High Performance"

CJ CheilJedang Reports Operating Profit of KRW 1.5244 Trillion Last Year
Sales Reach KRW 26.2892 Trillion, Up 12.1% YoY
Excluding CJ Logistics, Record High Sales of KRW 15.7444 Trillion
"Continued Innovative Growth Through Strengthening New Products and New Businesses"

[Asia Economy Reporter Song Seung-yoon] CJ CheilJedang recorded its highest-ever performance last year by surpassing 15 trillion KRW in sales (excluding CJ Logistics) for the first time.

CJ CheilJedang announced on the 14th that its consolidated operating profit last year was preliminarily estimated at 1.5244 trillion KRW, a 12.1% increase from the previous year. Sales rose 8.4% year-on-year to 26.2892 trillion KRW. Net profit increased by 13.5% to 892.4 billion KRW. Operating profit in the fourth quarter was 236.6 billion KRW, down 20.2% from the same period last year. Sales and net profit for the same quarter were 6.9478 trillion KRW and 200.9 billion KRW, respectively. Excluding CJ Logistics' performance, sales increased by 11.2% to 15.7444 trillion KRW, and operating profit rose 13.2% to 1.1787 trillion KRW.

This is the first time CJ CheilJedang has exceeded 15 trillion KRW in annual sales. Operating profit also surpassed 1 trillion KRW for two consecutive years following 2020.

This year, CJ CheilJedang plans to actively expand new businesses through the group's four future growth engines (Culture, Platform, Wellness, Sustainability). In the food business, the focus will be on 'K-Food' strategic products such as dumplings, chicken, processed rice, K-sauces, kimchi, and seaweed under the ‘GSP (Global Strategic Product)’ and ‘PlanTable’ brands, 100% plant-based products, and health business centered on CJ Wellcare. In the bio business, the company will fully engage in white bio business including marine biodegradable plastic material PHA, as well as red bio business based on microbiome and CDMO.

Last year, CJ CheilJedang’s food business division recorded an operating profit of 554.7 billion KRW, an 8.8% increase from the previous year. Sales were 9.5662 trillion KRW, up 6.7% year-on-year. Overseas processed food sales, including Schwan’s, reached 4.3638 trillion KRW. Domestically, key home meal replacement (HMR) products such as Hetbahn and dumplings continued to grow, and products like 'Bibigo,' which have become mainstream in major countries including the U.S. thanks to the K-Food wave, drove sales. Notably, in the North American market, sales of global strategic products (GSP) increased by 29% compared to the previous year. In China, online sales grew about 50% by expanding the platform centered on dumplings, and in Japan, sales of the drinking vinegar ‘Micho’ rose by more than 56%. Dumpling sales in the European market also increased by 72%.

The bio business division, focused on green bio such as amino acids and seasoning materials, posted sales of 3.7312 trillion KRW, a 25.1% increase from the previous year. Operating profit rose 51.6% to 473.4 billion KRW. Sales of future-oriented food materials such as ‘TasteEnrich’ and ‘FlavorEnrich’ also grew about sevenfold compared to the previous year. The feed and livestock subsidiary CJ Feed&Care recorded sales of 2.447 trillion KRW and operating profit of 150.6 billion KRW.

Riding on this growth momentum, the company plans to strengthen its shareholder-friendly dividend policy. Dividends for the 2021 fiscal year were raised by 1,000 KRW to 5,000 KRW per share. The total dividend amount increased by 25% to 80.2 billion KRW. Starting this year, CJ CheilJedang will implement quarterly dividends for the first time in the food industry and plans to return more than 20% of net profit based on separate financial statements to shareholders. Additionally, the company will reduce costs through strengthening purchasing and production capabilities and continue domestic and overseas growth of core products.

A CJ CheilJedang official said, “We will secure structural competitiveness and continue innovative growth through new product development, strengthening new businesses, and R&D investment in preparation for the future.”

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