Operating Profit of 1.6647 Trillion KRW Last Year... Up 9.2%
Food Business Annual Sales Surpass 10 Trillion KRW and Operating Profit Exceeds 600 Billion KRW
CJ CheilJedang posted solid results last year, supported by steady growth in global businesses such as K-food and bio. While growth slowed domestically due to cost burdens, overseas food sales accounted for a record high of 47%, driving overall performance.
CJ CheilJedang announced on the 13th that its consolidated operating profit for last year was tentatively estimated at 1.6647 trillion KRW, up 9.2% from the previous year. Sales increased by 14.4% to 30.0795 trillion KRW, while net profit decreased by 10.1% to 802.7 billion KRW. On a separate basis excluding CJ Logistics, operating profit rose 7.6% year-on-year to 1.2682 trillion KRW, and sales grew 19.3% to 18.7794 trillion KRW.
By business segment, the food division saw sales increase 16.1% year-on-year to 11.1042 trillion KRW, driven by strong overseas sales of K-food centered on the Bibigo brand. Operating profit also rose 12.5% to 623.8 billion KRW. This is the first time the food business has surpassed annual sales of 10 trillion KRW and operating profit of 600 billion KRW.
Domestic food business operating profit declined slightly due to cost pressures such as rising raw material prices, but overseas business exceeded 5 trillion KRW in annual sales and operating profit grew 45%. In particular, sales of global strategic products (GSP) such as dumplings, chicken, and processed rice grew 56% in key markets including the U.S., and the global food sales ratio reached a record high of 47%. Schwans, a U.S.-based acquired company, saw operating profit increase 52.8% (217.1 billion KRW) year-on-year due to productivity improvements, promotional efficiency, and fixed cost reductions from sales growth, surpassing 200 billion KRW for the first time. Domestic food sales recorded 5.9231 trillion KRW, up 13.9% from the previous year.
The bio division, focused on green bio such as amino acids and seasoning materials, posted sales of 4.854 trillion KRW, up 30.1%, surpassing 4 trillion KRW. Operating profit rose 34.5% to 636.7 billion KRW. The main product, amino acids, continued to grow based on market dominance over global competitors. CJ Feed & Care, an independent feed and livestock company, recorded sales of 2.8212 trillion KRW, up 15.3% year-on-year, but operating profit fell sharply by 94.9% to 7.7 billion KRW due to profitability deterioration from livestock cost burdens caused by rising grain prices.
Despite increasing global economic uncertainties, CJ CheilJedang plans to strengthen purchasing and production capabilities to reduce costs and continue domestic and overseas growth of core products. In food, the company will focus on expanding the global footprint of K-food and improving profitability, while actively fostering new products in the 'New Wellness' fields such as plant-based foods and care foods. In bio, it will accelerate strengthening competitiveness in future new growth businesses such as marine biodegradable material PHA and red bio businesses centered on CJ Bioscience. Through the newly launched FNT division last year, the company also plans to speed up securing new growth engines including wellness food materials, nutrition, alternative proteins, and cultured proteins.
A CJ CheilJedang official said, "We will secure structural competitiveness and continue innovative growth through the development of high value-added new products and strengthening new businesses for future preparation, as well as investment in research and development (R&D)."
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