CJ CheilJedang Q2 net profit rises 16% on global food sales

CJ CheilJedang's second quarter net profit rose 16%, driven by increased sales of food and high-end products. Overseas sales and equity gains contributed to positive results.

CJ CheilJedang logo [CJ CHEILJEDANG]

CJ CheilJedang’s second quarter net profit rose 16 percent from a year earlier on increased sales of food and high-end products from its bio business, the food and beverage company said Tuesday.

Net profit rose to 147.82 billion won ($108 million) from 127.46 billion won during the same period of last year, the company said in a statement. Revenue rose 0.3 percent to 7.2387 trillion won.

“Strong overseas sales of dumpling products under CJ's Bibigo brand, and other food products, buoyed the quarterly results. And increased sales of high-end amino acid for livestock helped,” CJ CheilJedang said.

Domestic revenue for the firm’s Hetbahn instant rice products, dumplings and processed foods rose 18 percent, 12 percent and 3 percent, respectively. In North America, instant rice sales rose 28 percent while those of dumplings rose 24 percent.

The bottom line also saw increased equity gains from wholly owned livestock feed company CJ Feed&Care, which focuses on Southeast Asia. CJ Feed&Care’s revenue fell 12 percent, but operating profits rose 288 percent, switching the company to the black.

Operating profit climbed 11 percent to 383.56 billion won in the June quarter from 344.56 billion won a year ago. Sales were up 0.3 percent to 7.24 trillion won from 7.22 trillion won during the cited period.

From January to June, net income surged 71 percent to 302.45 billion won from 176.77 billion won the previous year.

Operating profit jumped 27 percent to 759.5 billion won in the first half from 597.34 billion won a year earlier. Sales rose 1.1 percent to 14.45 trillion won from 14.29 trillion won.

CJ CheilJedang has business entities in the United States, Britain, France, Australia, Japan, China and Thailand, among others.

BY KIM JU-YEON, YONHAP [kim.juyeon@joongang.co.kr]