CJ CheilJedang reports 11.3% rise in Q2 OP on strong food, bio sales

CJ CheilJedang Corp. CI

CJ CheilJedang announced on Tuesday that its consolidated operating profit for the second quarter reached 383.6 billion won ($280 million), up 11.3 percent compared to the same period last year. The Kospi-listed company’s revenue grew slightly by 0.3 percent to 7.23 trillion won, while net profit surged by 16 percent to 147.8 billion won.

Excluding CJ Logistics, CJ CheilJedang’s Q2 revenue fell by 2.1 percent to 4.33 trillion won, but operating profit grew by 14.1 percent to 269 billion won. The company has seen its quarterly operating profit increase for three consecutive quarters since the fourth quarter of last year.

CJ CheilJedang attributed its strong Q2 profit to the robust performance of its overseas food business and biotech division, as well as the return to profitability of CJ Feed & Care. In contrast, the company’s domestic food business saw a 1 percent decline in revenue to 2.7 trillion won and a 4.8 percent decrease in operating profit to 135.9 billion won.

Bibigo Market by CJ CheilJedang in Korea House at the Paris Olympics. [Courtesy of CJ CheilJedang Corp.]

Despite the weakened consumer sentiment, processed food sales increased by 3 percent. The overseas food business achieved 1.32 trillion won in sales, driven by the expansion into major distribution channels, particularly in Western Europe, including Germany and the Netherlands.

The biotech division’s revenue added by 1 percent to 1.05 trillion won, while operating profit jumped by 17.4 percent to 99 billion won, which the company attributed to its strategy of maximizing profitability through increased sales of high-value-added products.