CJ CheilJedang(097950) said on the 11th that second-quarter consolidation-based sales came to 7.3621 trillion won, up 9.5% from a year earlier. Operating profit was 257.6 billion won, down 18.5% in the same period.
Excluding CJ Logistics, sales were 4.195 trillion won, with operating profit of 161.9 billion won. Sales rose 10.2% from a year earlier, but operating profit fell 18.4%.
By business division, the food business division posted sales of 2.8441 trillion won and operating profit of 70.9 billion won. Sales increased 5.8% from a year earlier, and operating profit decreased 21.3%. With sluggish domestic demand continuing, expense pressure from high oil prices increased and profitability weakened somewhat due to higher materials and supplies prices, CJ CheilJedang(097950) said.
Overseas food business sales came to 1.5072 trillion won, up 10.1% from a year earlier. Expanded sales of global strategic products (GSP) such as dumplings and Hetbahn drove growth.
Domestic food business sales were 1.3369 trillion won, up 1.4% from a year earlier. The materials business was affected by cost pressure from a weak won and declines in selling prices, but strong sales of new products based on H&W offset this.
The bio business division recorded sales of 1.3509 trillion won, up 20.8% from a year earlier, and operating profit of 91 billion won, down 15.9%. Sales increased on the back of expanded sales of specialty amino acids such as arginine and isoleucine, and key products such as lysine. However, profitability weakened somewhat due to intensified market competition for high-margin product tryptophan and a reverse base effect compared with the high-margin period a year earlier.
Meanwhile, reflecting non-operating losses such as foreign exchange transaction and derivatives valuation losses due to rising exchange rates and grain prices, the company posted a net loss of 23.9 billion won.
CJ CheilJedang(097950) plans to strengthen execution of strategies aligned with the essence and purpose of each business based on recently implemented business division rebalancing starting in the third quarter. The lifestyle food business division will expand sales of core GSPs such as dumplings and Hetbahn in line with the growth of global K-food, and in Korea, it will seek to defend profitability through a sales strategy focused on high-margin categories. The technology materials business division will drive continued sales growth in new businesses, and the core materials business division will leverage changes in the external environment to accelerate performance improvement in the second half.
A CJ CheilJedang(097950) official said, "We will accelerate the expansion of new global territories for K-food by putting forward global strategic products such as dumplings and Hetbahn, and focus on improving profitability through expanded sales in the bio business and cuts in manufacturing costs and fixed costs."