South Korean food conglomerate CJ CheilJedang Corp. reported an increase in quarterly operating profit for the third consecutive quarter, attributed to strong sales in its processed foods segment, including pre-cooked rice, frozen dumplings, and frozen pizza. This performance marks a recovery from the decline experienced in the third quarter of 2023.
For the second quarter, CJ CheilJedang recorded an operating profit of 269 billion won ($196.3 million) and revenue of 4.33 trillion won. While the operating profit rose by 14.1% year-on-year, revenue dipped by 2.1%. These figures exclude the earnings from its logistics arm, CJ Logistics Corp.
When accounting for CJ Logistics’ results, the company’s consolidated operating profit was 383.6 billion won, with revenue reaching 7.24 trillion won, marking increases of 0.3% and 11.3%, respectively.
The food division saw a decline, with operating profit and revenue down by 4.8% and 1%, respectively, due to the divestment of its Chinese unit, Jixiangju, last year. Domestic sales contributed 1.38 trillion won, while overseas sales reached 1.32 trillion won.
European sales surged by 57%, fueled by expanded distribution in the UK, Germany, and the Netherlands. In North America, sales of frozen dumplings, pre-cooked rice, and frozen pizza rose by 28%, 24%, and 12%, respectively, with Bibigo and Schwan’s leading the market. Sales in Oceania climbed 51%, driven by new product launches in Australia.
The bio business segment posted a 17.4% increase in operating profit, reaching 99 billion won, with revenue at 1.06 trillion won, supported by tryptophan and natural food additives. Meanwhile, the CJ Feed&Care unit returned to profitability with a 34.1 billion won operating profit, despite a 12% drop in sales, due to cost reductions and stable meat prices. The company plans to sell this unit for approximately 2 trillion won.
