South Korean food and bio company CJ CheilJedang reported a 26% surge in operating profit to 1.03 trillion won ($774 million) for 2023, despite flat revenue of 17.87 trillion won ($13.4 billion).
The company’s food division struggled domestically as consumer spending weakened, with sales dropping 1.8% to 5.77 trillion won ($4.3 billion). However, its international food business grew 3.6% to reach 5.58 trillion won ($4.2 billion), accounting for nearly half of total food sales.
European operations crossed the 100 billion won milestone for the first time, while the company maintained market leadership in North America where its Bibigo dumplings hold three times the market share of its nearest competitor.
The bio business segment saw operating profit rise 34.3% to 337.6 billion won ($253.6 million), driven by higher sales of specialty products like tryptophan. The feed and care division returned to profitability with 74.7 billion won ($56.1 million) in operating income.
The company plans to accelerate global expansion through new factories in South Dakota and Hungary, though it faces headwinds from sluggish domestic consumption and rising costs. Net profit fell 35.3% due to asset valuation losses.
