CJ CheilJedang Posts 4.0271 Trillion Won in Q1 Sales, Up 4.3% Year-on-Year

1Q Operating Profit Down 26% to 148.5 Billion Won
Food Business Division Records Sales of 3.0384 Trillion Won
"Global Strategic Products Show Growth in the US and Europe"

CJ CheilJedang announced on May 12 that its sales for the first quarter of this year (excluding CJ Logistics) reached 4.0271 trillion won, up 4.3% year-on-year, while operating profit fell by 26.0% compared to the same period last year, recording 148.5 billion won.

On a consolidated basis, including its subsidiary CJ Logistics, sales increased by 6.0% year-on-year to 7.1111 trillion won, while operating profit decreased by 17.2% to 238.1 billion won.

In the food business division, sales reached 3.0384 trillion won and operating profit was 143 billion won, up 3.9% and 11.2% respectively. Global strategic products (GSP), led by dumplings, continued to grow in overseas markets, while in Korea, the launch of new products contributed to improved performance.

Among these, the overseas food business recorded sales of 1.5555 trillion won, a 4.5% increase compared to the first quarter last year. In North America, sales of dumplings and ambient rice, both GSP items, expanded significantly, and pizza market share also increased. In Japan, thanks to the new Chiba plant, which began operations in September last year, dumpling sales rose by 17%, pushing market share into double digits (11.0%) for the first time, though total sales saw a slight decrease.

Europe and the Asia-Pacific region each recorded a 17% growth rate. In Europe, GSP items such as dumplings, chicken, and noodles drove growth, while in the Asia-Pacific region, standout results were achieved in Vietnam (+32%) and Oceania (+31%), led by dumplings, seaweed snacks, and ambient products, according to CJ CheilJedang.

Domestic food business sales were 1.4829 trillion won, a 3.2% increase year-on-year. While profitability declined and the materials business underperformed due to weak soybean meal market conditions, in processed foods, IP-linked new products such as the Netflix 'Chef in Black and White' Chef Collection led sales growth.

The bio business division posted sales of 988.7 billion won, a 5.7% increase year-on-year. Specialty amino acids like arginine achieved record-high sales due to increased production driven by rising demand. Both nucleotides and the natural seasoning ingredient Taste&Rich (TnR) saw increases in sales volume and revenue, thanks to the acquisition of new customers.

Operating profit was 5.5 billion won, down 92.4% from the first quarter last year, but up by 5.2 billion won compared to the previous quarter, marking a return to growth. CJ CheilJedang explained that the decline in profitability was due to intensified market competition for high-margin products like tryptophan and the base effect of lysine prices.

CJ CheilJedang plans to accelerate the "expansion of new overseas territories for K-food" in the second quarter, spearheaded by GSP in key overseas regions. In North America, digital marketing and campaigns focused on dumplings and ambient rice will be used to further strengthen the Bibigo brand's recognition. In Europe, the company will continue to expand into mainstream channels and broaden its product categories.

Domestically, the company aims to upgrade its portfolio by launching more new products that reflect current trends. In the bio business division, the focus will be on expanding sales of specialty products such as arginine, with the goal of improving profitability.

A CJ CheilJedang representative stated, "We will continue to expand new global markets for K-food through global strategic products like dumplings, while also striving to improve profitability through expanded bio sales and enhanced management efficiency."

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