CJ CheilJedang’s net profit plummets 80.1 percent on year in Q1

CJ CheilJedang’s net profit plummeted 80.1 percent on year to 49.3 billion won ($37.3 million) for first quarter earnings due to weak domestic consumption and cost burden. The figure fell far short of market expectations of...

CJ CheilJedang’s net profit plummeted 80.1 percent on year to 49.3 billion won ($37.3 million) for first quarter earnings due to weak domestic consumption and cost burden.

The figure fell far short of market expectations of 119.8 billion won compiled by FnGuide.

Operating profit fell 42 percent on year to 252.8 billion won, below market consensus of 296.9 billion won.

Sales inched upwards 1.3 percent to log 7.07 trillion won, but below analysts’ expectations of 7.2 trillion won.

The main food business saw its operating profit plunge 58.8 percent on year to 134 billion won in the first quarter, but its operating profit from overseas markets jumped by over 50 percent thanks to an increase in sales in global strategic products, such as dumplings and kimchi, in the United States and Europe, according to the company.

The food manufacturer also said its overseas sales accounted for 49 percent of total sales in the first quarter.

BY LEE JAE-LIM, YONHAP [lee.jaelim@joongang.co.kr]