CJ CheilJedang reported on the 12th that its second-quarter operating profit, excluding its subsidiary CJ Logistics, was 235.1 billion won, a decrease of 11.3% compared to the same period last year. Revenue was 4.3224 trillion won, down 0.2% from the same period.
According to CJ CheilJedang on the same day, the food division's sales amounted to 2.6873 trillion won, a 1% decrease compared to the same period last year. Operating profit recorded 90.1 billion won, down 34% over the same period.
The domestic food business experienced a 5% decline in sales to 1.3185 trillion won compared to the second quarter of last year due to sluggish domestic consumption and stagnation in offline channels. However, sales of online processed foods grew by 24%.
Overseas food sales increased 3% from the previous year to 1.3688 trillion won. This was a result of increased brand recognition for Bibigo and expanded entry into major distribution channels in the United States, Europe, Oceania, and Japan.
In terms of countries, North America accounted for the largest share of overseas sales, recording 1.112 trillion won in revenue, driven by the growth of frozen rice, chicken, rolls, and pizza. In Japan, sales of fruit vinegar 'Michu' and dumplings increased significantly. Notably, following the entry into major platforms like Eon, Costco, Amazon, and Rakuten, Bibigo has recently secured dedicated shelves in all stores of the large platform Don Quijote and is accelerating the expansion of its local operations, including the construction of a new production base in Chiba Prefecture.
The bio division reported sales of 1.0798 trillion won and operating profit of 102.4 billion won for the second quarter, representing increases of 2% and 8%, respectively, compared to the same period last year. Despite a high base burden for high-value items like tryptophan and specialty amino acids, both sales and operating profit increased due to rising lysine prices and expanded sales of Soy Protein Concentrate (SPC).
Among the specialty products, feed-grade histidine showed a high growth rate of 88% due to continuous demand growth in the salmon feed market and expansion of global market share.
Feed & Care recorded sales of 555.3 billion won and operating profit of 42.6 billion won. Although sales slightly decreased due to falling feed prices, significant improvements in operating profit were achieved thanks to favorable performance in the Vietnamese livestock business and structural improvements focused on profit.
CJ CheilJedang aims to accelerate the global expansion of K-food by building production bases in Japan and scaling up its Global Strategy Products (GSP) in the second half of the year. The domestic food business plans to accelerate digital transformation and continue launching products reflecting consumer trends in health and convenience to achieve sales growth.
The bio division will continue to grow through the establishment of 10 production sites globally, including in the United States, and cost competitiveness. Additionally, it aims to focus on diversifying its portfolio of specialty products including arginine, histidine, valine, and TasteNrich.